USD/CHF climbs toward the 2024 high (0.9225) following the 256K rise in US Non-Farm Payrolls (NFP).
By : David Song, Strategist
USD/CHF climbs toward the 2024 high (0.9225) following the 256K rise in US Non-Farm Payrolls (NFP), and the exchange rate may continue to track the positive slope in the 50-Day SMA (0.8895) as it still holds above the moving average.
USD/CHF extends the recent series of higher highs and lows to push the Relative Strength Index (RSI) towards overbought territory, and a move above 70 in the oscillator is likely to be accompanied by a further advance in the exchange rate like the price action from last year.
Join David Song for the Weekly Fundamental Market Outlook webinar.
Looking ahead, the update to the US Consumer Price Index (CPI) may also sway USD/CHF as the report is anticipated to show the headline reading widening to 2.8% in December from 2.7% per annum the month prior, while the core rate is expected to hold steady at 3.3% during the same period.
Signs of persistent inflation may generate a bullish reaction in the Greenback as it puts pressure on the Federal Reserve to pause its rate-cutting cycle, but a softer-than-expected CPI report may drag on the US Dollar as it fuels speculation for lower US interest rates.
With that said, lack of momentum to test the 2024 high (0.9225) may keep the RSI out of overbought territory, but USD/CHF may stage a further advance over the coming days should the bullish price series persist.
Chart Prepared by David Song, Senior Strategist; USD/CHF Price on TradingView
GBP/USD Approaches November 2023 Low
Gold Price Recovery Eyes December High
US Dollar Forecast: USD/CAD Stages Three-Day Rally
EUR/USD Weakness Brings January Opening Range in Focus
— Written by David Song, Senior Strategist
Follow on Twitter at @DavidJSong
Click the website link below to read our Guide to central banks and interest rates in 2025
cityindex.com
With the Fed signaling cautious rate cuts and the ECB focusing on growth risks, major central banks face pivotal decisions. How will these policies shape FX trends in 2025?
cityindex.com
USD/CHF climbs toward the 2024 high (0.9225) following the 256K rise in US Non-Farm Payrolls (NFP).
From time to time, StoneX Financial Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.
As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.
1 post - 1 participant
Read full topic
By : David Song, Strategist
US Dollar Outlook: USD/CHF
USD/CHF climbs toward the 2024 high (0.9225) following the 256K rise in US Non-Farm Payrolls (NFP), and the exchange rate may continue to track the positive slope in the 50-Day SMA (0.8895) as it still holds above the moving average.
US Dollar Forecast: USD/CHF Climbs Towards 2024 High
USD/CHF extends the recent series of higher highs and lows to push the Relative Strength Index (RSI) towards overbought territory, and a move above 70 in the oscillator is likely to be accompanied by a further advance in the exchange rate like the price action from last year.
Join David Song for the Weekly Fundamental Market Outlook webinar.
US Economic Calendar
Looking ahead, the update to the US Consumer Price Index (CPI) may also sway USD/CHF as the report is anticipated to show the headline reading widening to 2.8% in December from 2.7% per annum the month prior, while the core rate is expected to hold steady at 3.3% during the same period.
Signs of persistent inflation may generate a bullish reaction in the Greenback as it puts pressure on the Federal Reserve to pause its rate-cutting cycle, but a softer-than-expected CPI report may drag on the US Dollar as it fuels speculation for lower US interest rates.
With that said, lack of momentum to test the 2024 high (0.9225) may keep the RSI out of overbought territory, but USD/CHF may stage a further advance over the coming days should the bullish price series persist.
USD/CHF Price Chart – Daily
Chart Prepared by David Song, Senior Strategist; USD/CHF Price on TradingView
- USD/CHF stages a four-day rally as it extends the advance from the monthly low (0.9009), with breach above the 2024 high (0.9225) opening up the October 2023 high (0.9245).
- Next area of interest comes in around the 2023 high (0.9440), but USD/CHF may struggle to extend the recent series of higher highs and lows should it fail to test the 2024 high (0.9225).
- Lack of momentum to close above 0.9180 (23.6% Fibonacci extension) may push USD/CHF back towards the 0.9030 (38.2% Fibonacci extension) to 0.9040 (23.6% Fibonacci extension) region, with a breach below the monthly low (0.9009) bringing the 0.8880 (38.2% Fibonacci retracement) to 0.8910 (38.2% Fibonacci extension) zone on the radar.
Additional Market Outlooks
GBP/USD Approaches November 2023 Low
Gold Price Recovery Eyes December High
US Dollar Forecast: USD/CAD Stages Three-Day Rally
EUR/USD Weakness Brings January Opening Range in Focus
— Written by David Song, Senior Strategist
Follow on Twitter at @DavidJSong
Click the website link below to read our Guide to central banks and interest rates in 2025
Central Banks FY 2025 Market Outlook - City Index AU
With the Fed signaling cautious rate cuts and the ECB focusing on growth risks, major central banks face pivotal decisions. How will these policies shape FX trends in 2025?
US Dollar Forecast: USD/CHF Climbs Towards 2024 High
USD/CHF climbs toward the 2024 high (0.9225) following the 256K rise in US Non-Farm Payrolls (NFP).
From time to time, StoneX Financial Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.
As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.
1 post - 1 participant
Read full topic
