Fundamental Overview
The lack of catalysts recently kept the US Dollar supported across the board despite the slowdown in momentum. The market might now be looking forward to the first weeks of November when we will get the key economic data, the FOMC decision and the US elections.
There’s been also a good argument that the markets are already positioning for a Trump victory and that should translate in 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.
USDCHF Technical Analysis – Daily Timeframe
On the daily chart, we can see that USDCHF continues to slowly edge 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 have a minor support around the 0.8640 level. This is the area the sellers will need to break to start targeting the 0.8550 level. The buyers, on the other hand, will likely step in around the 0.8640 level if we were to get a pullback into it. The red lines define the average daily range for today.
Upcoming Catalysts
This week is pretty empty on the data front with market moving releases scheduled for the latter part of the week. On Thursday, we get the Flash Japanese and US PMIs, and the US Jobless Claims figures.