Technical Bias: Bullish
Key Takeaways
US dollar eyes the US Gross Domestic Product report for more gains in the near future.
USDCHF pair stopped right around an important resistance area, which might result in a short-term correction.
USDCHF support seen at 0.9400 and resistance ahead at 9520.
The US dollar cannot continue to rise forever, especially when all major technical indicators are signaling overbought readings. However, we need some solid signs of a top before calling for a retracement.
US GDP
Today, the US Gross Domestic Product report will be released by the US Bureau of Economic Analysis. The forecast is slated for an increase of 4.6% in the US GDP, compared to the last estimate of a 2.1% decline. Moreover, the personal consumption expenditure is expected to rise by 2.3%. No doubt, the market is expecting good numbers, but we need to be very careful as any major disappointment might trigger a correction in the US dollar considering the fact that it is already at elevated levels.
Technical Analysis
There is a three trend line structure formed on the 4 hour chart of the USDCHF pair. Yesterday, the pair stalled right around the topmost trend line during the NY session at 0.9512. As this analysis is written, the pair is testing the middle trend line which is just above the 38.2% Fibonacci retracement level of the last leg higher from the 0.9353 low to 0.9514 high. So, if it settles below the trend line and support area, then there is a high probability that the pair might head towards the channel support area.
Alternatively, if it corrects higher from the current trend line, then it might head back towards the channel resistance trend line, which is roughly around the 0.9520 level. The chance of a correction is growing, but we need the pair to close below the channel support area for a move lower.
Recommended Content
Editors’ Picks
EUR/USD stabilizes above 1.1350 on Easter Friday
EUR/USD enters a consolidation phase above 1.1350 on Friday as the trading action remains subdued, with major markets remaining closed in observance of the Easter Holiday. On Thursday, the European Central Bank (ECB) announced it cut key rates by 25 bps, as expected.
GBP/USD fluctuates below 1.3300, looks to post weekly gains
After setting a new multi-month high near 1.3300 earlier in the week, GBP/USD trades in a narrow band at around 1.32700 on Friday and remains on track to end the week in positive territory. Markets turn quiet on Friday as trading conditions thin out on Easter Holiday.
Gold ends week with impressive gains above $3,300
Gold retreated slightly from the all-time high it touched at $3,357 early Thursday but still gained more than 2% for the week after settling at $3,327. The uncertainty surrounding US-China trade relations caused markets to adopt a cautious stance, boosting safe-haven demand for Gold.
How SEC-Ripple case and ETF prospects could shape XRP’s future
Ripple consolidated above the pivotal $2.00 level while trading at $2.05 at the time of writing on Friday, reflecting neutral sentiment across the crypto market.
Future-proofing portfolios: A playbook for tariff and recession risks
It does seem like we will be talking tariffs for a while. And if tariffs stay — in some shape or form — even after negotiations, we’ll likely be talking about recession too. Higher input costs, persistent inflation, and tighter monetary policy are already weighing on global growth.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.