USD/CHF Price Analysis: Trades back and forth around 0.8800

USD/CHF trades sideways near 0.8800 as the focus shifts to US economic data.
The Swiss economy is expected to have growth at a moderate pace of 0.1% in the last quarter of 2023.
Fed policymakers support holding interest rates unchanged in the range of 5.25%-5.50%.

Sagar Dua FXStreet

The USD/CHF is stuck in a tight range near the round-level resistance of 0.8800 since Friday’s trading session. The Swiss Franc asset struggles to find a direction as investors await the United States core Personal Consumption Expenditure price index (PCE) and Swiss Q4 Gross Domestic Product (GDP) data for further guidance.

The US Dollar edges down in Tuesday’s trading session. Further action in the US Dollar will be guided by the US core PCE price index data, which will influence market expectations for the Federal Reserve’s (Fed) rate cuts.

Meanwhile, Fed policymakers argue in favor of holding interest rates unchanged in the range of 5.25%-5.50% until they get evidence that inflation will fall sustainably to the required rate of 2%.

On the Swiss front, investors await the Q4 GDP data, which will be published on Thursday. Investors anticipate the economy grew modestly by 0.1% in the October-December quarter against 0.3% in the third quarter of 2023.

USD/CHF consolidates in a narrow range around 0.8800. The broader outlook remains bullish as the pair trades in a Rising Channel chart pattern formed on a four-hour timeframe. In the aforementioned chart pattern, market participants consider each pullback a buying opportunity.

The 50-period Exponential Moving Average (EMA) at 0.8800 remains sticky with spot prices, indicating a sideways trend.

The 14-period Relative Strength Index (RSI) oscillates in the 40.00-60.00 range, demonstrating a sharp volatility contraction.

Fresh upside would emerge if the asset breaks above the three-month high of around 0.8886, which would unlock upside towards the September 20 low at 0.8932 and the November 8 low at 0.8976.

On the contrary, a breakdown below February 13 low at 0.8746 would expose the asset to round-level support of 0.8700, followed by February 1 high around 0.8650.

USD/CHF four-hour chart

USD/CHF

Overview
Today last price	0.879
Today Daily Change	-0.0011
Today Daily Change %	-0.12
Today daily open	0.8801

Trends
Daily SMA20	0.8753
Daily SMA50	0.8638
Daily SMA100	0.8766
Daily SMA200	0.8836

Levels
Previous Daily High	0.8822
Previous Daily Low	0.8788
Previous Weekly High	0.8838
Previous Weekly Low	0.8742
Previous Monthly High	0.8728
Previous Monthly Low	0.8399
Daily Fibonacci 38.2%	0.8801
Daily Fibonacci 61.8%	0.8809
Daily Pivot Point S1	0.8785
Daily Pivot Point S2	0.877
Daily Pivot Point S3	0.8751
Daily Pivot Point R1	0.882
Daily Pivot Point R2	0.8838
Daily Pivot Point R3	0.8854

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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