Created
: 2023.09.20
2023.09.20 01:16
On Tuesday, the USD/CHF continued gaining ground, increasing to 0.8980, and already tallied a 1.60% monthly gain. On the one hand, the Swiss National Bank is expected to deliver its last rate hike from this tightening cycle to 2%, while the Federal Reserve's (Fed) cycle isn't done yet.
In line with that, the Federal Open Market Committee (Fed), two-meeting kicked off on Tuesday and ended on Wednesday with the announcement of the monetary policy decision. It is widely expected that the Fed will hold rates steady at the 5.25-5.50% range but will hint at further rate hikes being necessary. Economic activity in the US was seen holding resilient, and as the Fed is expecting the economy to cool down, one last hike may be appropriate. In that sense, as investors discount that the Swiss National Bank (SNB) will end its last hike on Thursday, monetary policy divergences may continue pushing the pair upwards.
On the data front, the US reported that Building Permits accelerated to 1.543M in August, beating the expected and previous figures, while Housing Starts slightly decelerated to 1.283M.
The daily chart analysis indicates a bullish outlook for the USD/CHF in the short term. The Relative Strength Index (RSI) is above its midline in positive territory, with a positive slope near 70, aligning with the positive signal from the Moving Average Convergence Divergence (MACD), which displays green bars, reinforcing the strong bullish sentiment. Plus, a bullish crossover between the 20 and 100-day Simple Moving Average (SMA) was recorded at the 0.8885 area, which could further boost the pair.
Support levels: 0.8950, 0.8900, 0.8885.
Resistance levels: 0.8985, 0.9000, 0.9038 (200-day SMA)
Created
: 2023.09.20
Last updated
: 2023.09.20
FXStreet
Financial media
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy