Fundamental Overview
The US Dollar has been gaining ground across the board this week despite the lack of economic data and lower Treasury yields, essentially moving forward by inertia.
Stanley Druckenmiller said in an interview yesterday that the market is already positioning for a Trump victory given the moves in some stocks like DJT for example.
That could explain the recent USD strength as it should appreciate on higher growth and less rate cuts expectations. Nevertheless, not all markets have been in sync with this view, so it could be just noise.
For now, we can only work with data and today we get the US retail sales and jobless claims figures which will likely be market moving. The key events though will be in November when we get the October data and the US election.
USDCHF Technical Analysis – Daily Timeframe
On the daily chart, we can see that USDCHF continues to march higher with the buyers targeting the key resistance around the 0.8730 level where we can also find the trendline for confluence. That’s where we can expect the sellers to step 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 look for a break higher to increase the bullish bets into the 0.89 handle next.
USDCHF Technical Analysis – 4 hour Timeframe
On the 4 hour chart, we can see that we have an upward trendline defining the current bullish momentum. The buyers will likely keep on leaning on it to position for further upside. The sellers, on the other hand, will want to see the price breaking lower to pile in for a drop into the 0.8550 level.
USDCHF Technical Analysis – 1 hour Timeframe
On the 1 hour chart, we can that we have a minor support around the 0.8640 level. This is where we can expect the buyers to step in with a defined risk below the level to position for new highs, while the sellers will look for a break lower to target a drop into the trendline. The red lines define the average daily range for today.
Upcoming Catalysts
Today we have the US Retail Sales and US Jobless Claims data.