USDCHF Technical Analysis – Rangebound price action around the highs

Fundamental
Overview

The US Dollar remains the
strongest currency but overall, we haven’t got much action in the past couple
of weeks due to the lack of key catalysts and the market’s pricing remaining
largely unchanged around roughly three rate cuts by the end of 2025.

During the Asian session,
we saw the greenback getting a bid as Trump said that he will charge Mexico and
Canada a 25% tariff on all products coming into the US and will charge China an
additional 10% tariff.

On the CHF side, the market
continues to price a 72% chance of a 25 bps cut in December and a total of 70
bps of easing by the end of 2025. Last week, SNB’s
President Schlegel said that the central bank will use negative rates if
necessary. The Swiss Franc sold off initially but eventually recouped all the
losses.

USDCHF
Technical Analysis – Daily Timeframe

On the daily chart, we can
see that USDCHF continues to display a rangebound price action around the
recent highs. From a risk management perspective, the buyers will have a better
risk to reward setup around the major upward trendline to position for a rally into the 0.9050
level next. The sellers, on the other hand, will want to see the price breaking
below the trendline to start targeting new lows.

USDCHF Technical
Analysis – 4 hour Timeframe

On the 4 hour chart, we can
see the upward spike on SNB’s Schlegel dovish comments which got faded as the
new week began. We have a nice support
around the 0.88 handle where we can expect the buyers to step in with a defined
risk below it to position for a rally into new highs. The sellers, on the other
hand, will look for a break lower to target a break below the major trendline.

USDCHF Technical Analysis – 1 hour Timeframe

On the 1 hour chart, we can
see that we have a minor upward trendline acting as support. The buyers will
likely lean on it to position for a rally into new highs, while the sellers
will look for a break lower to target a drop into the 0.88 support. The red
lines define the average daily range for today.

Upcoming
Catalysts

Today we have the US Consumer Confidence report and the FOMC Meeting Minutes.
Tomorrow, we get the US PCE report and the latest US Jobless Claims figures.

This article was written by Giuseppe Dellamotta at www.forexlive.com.