Comprehensive Analysis for USD/CHF for January 26, 2024

In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the USD/CHF for 26th January 2024. 

USD/CHF Key Takeaways

• U.S. economy is strong: The PMI data and fourth-quarter GDP released by the United States this week both exceeded expectations, making the market expect that the Federal Reserve will be less eager to cut interest rates. The U.S. dollar index bulls still have the upper hand in the short term. 
• Geopolitical tensions: As tensions in the Red Sea continue to disrupt global trade, safe-haven products are still sought after, and the Swiss franc has short-term appreciation potential. 

USD/CHF Technical Analysis

USD/CHF Daily Chart Insights

• Stochastic Oscillator: The indicator sends a short signal when overbought, suggesting that the current bullish momentum of the exchange rate will slow down, and be wary of the exchange rate reversing downward. 
• Moving average support: The blue 17-day moving average provides short-term support for the exchange rate to rise. On Wednesday, there was a bearish engulfment. After falling to the moving average, it was blocked and rebounded. If the exchange rate fails to rebound and break through the previous high, the exchange rate may continue its decline since October last year. 

USD/CHF 1-hour Chart Analysis

• Stochastic Oscillator: The indicator sends a short signal after struggling in the overbought area, implying that the current bulls do not have enough strength and cannot enter the market recklessly. At the same time, judging from the short signals in the daily cycle, you can pay attention to short selling opportunities after the 1-hour indicator shows a short signal again. 
• Key resistance area: The exchange rate is blocked at the 61.8% Fibonacci retracement level, but the blue 17-period moving average supports the upward trend of the exchange rate. If it continues to break above, the key resistance price will look towards the 78.6% Fibonacci retracement position, which is also the neckline of the previous top, 0.87020 area. 

Trading Central Pivot Indicator

• According to the trading central in Ultima Markets APP, the central price of the day is established at 0.8645, 
• Bullish Scenario: Bullish sentiment prevails above 0.8645, first target 0.8685, second target 0.8705; 
• Bearish Outlook: In a bearish scenario below 0.8645, first target 0.8625, second target 0.8605. 

Conclusion