USD/CHF Losses Will Likely Continue, Next is Bank of England Interest Rate Decision.
- Below the 0.9400 and 0.9350 support levels, USD/CHF fell.
- On the 4-hours chart, a significant negative trend line is developing with resistance close to 0.9320.
- The Federal Reserve raised interest rates by 0.50 points.
- Today is the scheduled day for the BoE interest rate decision (previous 3.0%, projection 3.5%).
Technical Analysis of USD/CHF
The US Dollar’s recent slide versus the Swiss Franc began well above the level of 0.9500. Below the 0.9400 and 0.9380 support levels, USD/CHF increased in speed.
The pair has positioned itself considerably below the 0.9400 level, the 100 simple moving average (red, 4-hours), and the 200 simple moving average, as shown on the 4-hours chart.
Even worse, it tested the 0.9230 support zone after breaking the 0.9300 barrier. Below the 0.9200 support area, it is still at risk of further losses as it is currently consolidating its losses. The 0.9165 zone is the next significant area of support.
The pair may move into the 0.9120 support area if there are any additional losses. The pair is up against resistance near the level of 0.9320.
On the same chart, a significant bearish trend line is also developing, with resistance located close to 0.9320. Near 0.9350 may serve as the next significant obstacle. Possibly beginning with a clear advance above the 0.9350 resistance.
In the scenario described, USD/CHF may attempt to test 0.9400. Any further gains might pave the stage for a move in the direction of the 0.9500 resistance region.
In terms of EUR/USD, the pair increased in speed over the 1.0620 level, and declines are anticipated to continue to be supported in the days to come.
Economic News To Trade Today
- BoE Interest Rate Decision: 3.5% Predicted, up from 3.0% previous.
- US Retail Sales for November 2022 (MoM) – Forecast -0.1%, compared to +1.3% in the prior month.
Author: Amogo Solomon
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