- USD/CHF declined towards 0.9040, consolidating below the 20-day SMA.
- Federal Reserve officials will be on the wires later in the session.
- FOMC minutes on Wednesday and CPI figures from September from the US the next week highlights.
The USD/CHF went down close to the 0.9040 level and had its fifth day in a row with losses. There won’t be any important events related to the US Dollar on Tuesday, except for speeches by Christopher Waller and Neel Kashkari from the Federal Reserve. These speeches could affect bond markets and the US Dollar’s value if they give hints about what the Fed might do. There aren’t any significant reports or data scheduled for release in Switzerland.
People are now looking forward to Wednesday when the Federal Open Market Committee (FOMC) minutes from the September meeting will be released. Investors want to know more about what the Fed officials think. Also, on Thursday, the US will release inflation numbers for September, which are expected to show a slowdown in the Consumer Price Index (CPI). Keep an eye on the situation in Israel because rising tensions could make the US Dollar more attractive as a safe investment.
Regarding USD/CHF levels to watch:
- The daily chart shows a negative outlook for USD/CHF in the short term. The Relative Strength Index (RSI) is below the middle line and moving down, which matches the negative signal from the Moving Average Convergence Divergence (MACD) that’s showing red bars. This indicates a strong bearish sentiment.
- The pair is trading below the 20-day Simple Moving Average (SMA) but above the 100 and 200-day SMAs. This suggests that, in the bigger picture, the bulls still have some control over the bears.
Key support levels to watch: 0.9050, 0.9030, 0.9000.
Key resistance levels: 0.9073 (20-day SMA), 0.9150, 0.9170.