FxNews—The Swiss Franc has decreased slightly, now valued at around 0.85 per U.S. Dollar. This change follows the latest reports showing Swiss inflation slowed to 0.8%, less than the expected 1.1%.
Switzerland Eyes 50bps Rate Cut Amid Low Inflation
With the inflation rate lower than anticipated, experts predict that Switzerland’s policymakers might lean more cautiously. In their December meeting, they suggested a potential 50 basis point rate cut by the Swiss National Bank (SNB). Before this, the SNB had already lowered interest rates three times, each by 25 basis points.
Dollar Hits 3-Week High Amid Job Surge
Meanwhile, the U.S. Dollar has strengthened, reaching its highest point in three weeks. This increase comes after positive employment data in the U.S., which suggests that the U.S. economy is strong enough that the Federal Reserve might not have to reduce interest rates drastically.
USDCHF Technical Analysis – 14-October-2024
The currency pair trades in a bull market. In today’s trading session, the price exceeded the 61.8% Fibonacci resistance level at 0.862. As of this writing, the uptrend resumes as the rate is slightly above the mentioned Fibonacci.
The technical indicators suggest the primary trend is bullish because the USD/CHF price is above the 50- and 100-period simple moving averages. However, the U.S. dollar might be overpriced as the RSI 14 steps into overbought territory.
Additionally, the Awesome Oscillator signals divergence, which could cause the USD/CHF pair to step into a consolidation phase and dip to lower support levels.
Overall, the technical indicators suggest the primary trend is bullish, but the currency pair might be overpriced in the short term.
USDCHF Forecast – 14-October-2024
The immediate support is at the October 10 high, the 0.862 mark. If the USD/CHF price dips below this level, the Awesome Oscillator’s divergence signal will likely come into play. In this scenario, the USD/CHF price can potentially dip to the 50-period SMA at approximately 0.855.
Please note that the market is overbought. Therefore, it is not advisable to join the market in this situation.
That being said, we suggest retail traders and investors wait patiently for the USD/CHF price to consolidate and monitor the price for bullish signals, such as candlestick patterns near the 50-period SMA.
USDCHF Support and Resistance Levels – 14-October-2024
Traders and investors should closely monitor the key levels below to make informed decisions and adjust their strategies accordingly as market conditions shift.
- Support: 0.862 / 0.854
- Resistance: 0.867 / 0.874
J.J Edwards is a finance expert with 15+ years in forex, hedge funds, trading systems, and market analysis.
