JPow just hinted that the Fed isn’t in any hurry to cut interest rates further.
Will this help push USD/CHF above a key resistance zone?
We’re taking a closer look at the pair’s daily chart for clues.
USD/CHF Daily Forex Chart by TradingView
In case you missed it, Fed Chair Powell made it clear that he and the crew aren’t rushing to cut rates. They’re waiting to see either a notable slowdown in the labor market or a sharper drop in inflation before making a move.
Meanwhile, the Swiss franc is under pressure, much like other European currencies, as traders brace for a potential global tariff war. Its safe-haven appeal is also fading with the dollar staying strong and gold hitting fresh record highs.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the U.S. dollar and Swiss franc, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
USD/CHF has been in an uptrend since September and picked up more momentum this month as it heads toward the .9200 major psychological handle.
Not only is the level close to the R1 (.9218) Pivot Point line, but the area also marks the range resistance that the bulls haven’t broken since March 2023. That’s about the time Taylor Swift started her Eras tour!
With USD/CHF still about 70 pips away from .9200, there is time to consider how to trade a potential resistance retest.
Watch for bearish candlesticks forming at the level, which could bring sustained selling pressure and push USD/CHF back down toward the .9000 support zone.
But if USD/CHF breaks above .9200 or holds above the R1 or R2 Pivot Point levels, dollar bulls may start targeting higher inflection points like .9400 or .9800.
As always, watch out for other top-tier catalysts that could impact overall market sentiment, and make sure you practice proper position sizing when taking any trades!
