USDCHF consistently showed gains last week and now the bulls are trying to keep it above the 0.9300 level. The results of last week’s hawkish FOMC meeting clearly helped strengthen the USD on the whole and helped the USDCHF out of the 0.9100–0.9200 trading range it has been in since early January.
However, the bears are still trying to keep the USDCHF from rising higher than the November 2021 high of 0.9370, with the 2021 high of 0.9458 being the last resistance level the bears need to defend. The movement of 20- and 50-period SMA in the H4 time interval indicates a Golden Cross, but the RSI-14 and MACD indicators indicate that the USDCHF pair has passed the overbought zone, and a short-term retracement is possible. The 0.9200 level is the closest support to the 0.9100 level and would be activated as support if USDCHF records a sharp fall.
Current sentiment now clearly supports the strengthening of the USD with the market now focusing on speculation of a 50-point rate hike at the March 2022 FOMC meeting against the safe haven currency CHF. The release of NFP data this Friday is expected to give an indication of the movement of the USDCHF in the short term.
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Tunku Ishak Al-Irsyad
Market Analyst
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