USD/CHF Slips Below 0.7950 as Fed Speakers Loom.
USD/CHF slips below 0.7950 as attention turns to Fed speakers.
FUNDAMENTAL OVERVIEW:
The US Dollar’s advance against the Swiss franc capped at 0.7970 on Monday, with the pair retreating below 0.7945 amid softening market sentiment during the European session, as traders focused on a series of Federal Reserve speeches scheduled later today.
Five Fed Governors are set to provide further insights into the central bank’s monetary policy plans, with particular attention on new member Stephen Miran, who is expected to explain his dissenting vote for last week’s 50-basis-point rate cut. These speeches will set the stage for Fed Chair Jerome Powell’s conference on Tuesday, where investors will look for confirmation on the likelihood of consecutive rate cuts.
In Switzerland, attention turns to Thursday’s SNB policy decision. The central bank is widely expected to hold its benchmark rate at 0%, with markets closely monitoring the possibility of further cuts into negative territory amid weak macroeconomic data and trade uncertainties with the U.S.
USD/CHF TECHNICAL ANALYSIS CHART:
Technical Overview:
USD/CHF is trading within a down channel.
USD/CHF is moving below all the Moving Averages (SMA).
The Relative Strength Index (RSI) is in the Buying Zone, while the Stochastic oscillator suggests a Negative trend.
Immediate Resistance level: 0.7971
Immediate support level: 0.7887
HOW TO TRADE USD/CHF
USD/CHF initially dipped but found support, triggering a sharp rebound that pushed the pair above key resistance. However, the upside was short-lived as the price reversed and is now testing a crucial resistance zone. A bearish engulfing pattern has formed at this level, suggesting further downside potential if the pair remains below it.
