USD/CHF Price Analysis: Extends recovery above 0.8500
|- USD/CHF advances above 0.8500 amid a sharp recovery in the US Dollar.
- Investors’ risk-appetite trims ahead of the FOMC minutes.
- USD/CHF aims stabilization above 0.8500 for further upside.
The USD/CHF pair delivers a decisive break above the psychological resistance of 0.8500 in the European session. The Swiss franc asset has extended its recovery to near 0.8520 amid a sharp rebound by the US Dollar Index (DXY) ahead of the Federal Open Market Committee (FOMC) minutes and the Manufacturing PMI data for December by the Institute of Supply Management (ISM).
The market mood has turned risk-averse amid caution that absence of discussions of interest rate cuts from policymakers in the FOMC minutes of December’s monetary policy could spoil recent recovery in risk-perceived assets.
For the ISM Manufacturing PMI, investors see a nominal recovery to 47.1 vs. the former reading of 46.7. The economic data is expected to remain below the 50.0 threshold for the 14th straight month.
On the Swiss Franc front, the Manufacturing PMI for December improved to 43.0 vs. the former reading of 42.1.
USD/CHF advances swiftly after delivering a breakout of the consolidation formed in a narrow range around 0.8500. The Swiss Franc asset has climbed above the horizontal resistance plotted from 22 December 2023 low at 0.8514. Sustainability above the same would strengthen the US Dollar bulls.
Upward-sloping 50-period Exponential Moving Average (EMA) indicates strength in the near-term trend.
The Relative Strength Index (RSI) (14) oscillates in the bullish range of 60.00-80.00, indicating strength in the upside momentum.
Further upside above December 26 high near 0.8580 would drive the asset towards the round-level resistance of 0.8600, followed by December 21 high at 0.8633.
On the contrary, a downside move below December 28 high around 0.8450 would drag the asset towards the round-level support of 0.8400 and December 29 low of 0.8357.
USD/CHF hourly chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.