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Dollar Challenges the Highest Price since Dec. 2020

dollar, swiss

The US dollar is looking strong against the safe haven Swiss franc (CHF). The USD/CHF currency exchange rate is looking to gain some follow through on the above daily MT 4 price action chart. Price action is trading near the highest price point since December 2020 near 0.9085.

Today, the United States will publish the monthly Chicago purchasing managers’ index (PMI). The world’s largest economy is also releasing monthly trade goods balance data and the Fed’s preferred measure of inflation, the monthly core PCE index is also on the schedule. The University of Michigan will published their revised monthly consumer sentiment index.

Switzerland will release initial quarterly gross domestic product (GDP) data and their monthly KOF economic barometer. As far as the euro is concerned, France will publish initial quarterly gross domestic product (GDP) data and monthly consumer spending. Spain is releasing their monthly fly consumer price index (CPI). Germany is releasing their monthly import prices.

Daily US Dollar Technical Analysis (USD/CHF)

The US dollar is trading below the upside barrier in play at 0.9298. A daily close above this level brings the bulls into the USD/CHF Forex market. The next layer of technical support lines up at 0.91 with the two hundred (200) day simple moving average (SMA) coming into play at 0.9145 next.

The technical indicators are looking positive and not in overbought territory for both the relative strength index (RSI) and the MACD histogram. This could indicate more strength for the US dollar against Switzerland’s franc.

On the downside a daily close below 0.9030 opens the door to challenge the key psychological layer of technical support at the round number of 0.90. There is the one hundred (100) day simple moving average at 0.8990 in play next that Forex traders should watch. Below that level is a congestion zone lining up at 0.8885 to 0.8880.

About David Frank

David has his MA and PhD in Economics. He is a technical analyst who has been trading in the Forex world for over a decade. As an analyst and trader, David believes in the big picture by blending together technical analysis with the fundamentals behind the scenes in the Forex and Bond markets. David’s trading strategy is unique. He blends an understanding of fundamental and macroeconomics with technical analysis to offer a unique view into Forex. He applies several strategies including carry long positions, to take advantage of high yields in non-volatile markets, as well as using quicker, chart related analysis for day trading.

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