Detailed FX Market Outlook and Analysis

USD/CHF Daily Analysis 24-MAY-2023



The USD/CHF pair continues its range trading pattern, indicating a period of consolidation and indecisiveness in the market. This daily analysis focuses on assessing the current state of the pair, taking into account the intraday outlook and providing insights into potential price movements.

The recent rebound from the short-term bottom at 0.8826 suggests a temporary recovery in the USD/CHF pair. The intraday bias remains neutral as long as the minor support level at 0.8922 holds. Traders should closely monitor price action around this level for potential breakouts or reversals. A sustained trading above the 55-day Exponential Moving Average (EMA), currently positioned at 0.9043, would indicate bullish strength and confirm that the ongoing rally is potentially correcting the overall downtrend from 1.0146. Such confirmation would pave the way for further upward movement, with the next target being the 38.2% retracement level of 1.0148 to 0.8826, located at 0.9329.

On the downside, a breach of the 0.8922 support level would shift the intraday bias to the bearish side, increasing the likelihood of a retest of the previous low at 0.8826. Traders should closely monitor price action around these levels to assess potential buying or selling opportunities.

Zooming out to the bigger picture, it’s important to consider the overall trend and key levels in the USD/CHF pair. The decline from the 2022 high of 1.1046 is seen as a significant move within a long-term range pattern that originated from the 2016 high of 1.0342. This indicates that the current downside movement may have limited potential and could eventually lead to a reversal.

For the USD/CHF pair to signal a potential medium-term bottom, it would need to break and sustain above the resistance-turned-support level at 0.9062. Such a breakthrough would be the first sign of a shift in the market sentiment and could attract more buyers to the pair. However, a decisive breach of the support level at 0.8759 would carry larger bearish implications, indicating a continuation of the downtrend and potentially opening up further downside targets.

USD/CHF Daily Analysis Summary

In Summary, the USD/CHF pair remains within a range trading phase, with the intraday bias currently neutral. Traders should closely monitor the support level at 0.8922 and the resistance-turned-support level at 0.9062 for potential breakout or reversal opportunities. The bigger picture suggests that the overall downtrend may be nearing a potential bottom, but a decisive breach of the support level at 0.8759 would be required to confirm a continuation of the bearish sentiment.

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