Fundamental Overview
The US Dollar started the week on the backfoot as the odds of a Harris victory jumped higher leading to a pullback in the Trump’s trades.
Everything hinges on the US election now with a red sweep seen as the most bullish scenario for the greenback, while a blue sweep as the most bearish.
The price action will likely be choppy until we start to get a better sense of who’s going to win, so the best strategy would be to wait for the results, because the trend that will be set will likely last for months anyway.
USDCHF Technical Analysis – Daily Timeframe
On the daily chart, we can see that USDCHF rejected the key resistance zone around the 0.87 handle where we had also the trendline for confluence.
The sellers stepped in with a defined risk above the trendline to position for a drop into the 0.8333 level. The buyers, on the other hand, will want to see the price breaking higher to increase the bullish bets into new highs.
USDCHF Technical Analysis – 4 hour Timeframe
On the 4 hour chart, we can see that that the price is approaching the support zone around the 0.86 handle. That’s where we can expect the buyers to step in with a defined risk below the level to position for the break above the key trendline. The sellers, on the other hand, will want to see the price breaking lower to increase the bearish bets into the 0.8333 level.
USDCHF Technical Analysis – 1 hour Timeframe
On the 1 hour chart, we can see more clearly the rangebound price action as the market awaits the US election result. There’s not much to add here as the buyers will look for a bounce, while the sellers will look for a break. The red lines define the average daily range for today.
Upcoming Catalysts
Today is the US Presidential Election Day but we will also get the US ISM Services PMI report. On Thursday, we have the US Jobless Claims and the FOMC Policy Decision. On Friday, we conclude the week with the University of Michigan Consumer Sentiment report.
