Since today's two previous articles on the euro and the pound have said enough about the importance and impact on the trading of the Fed's decision on rates and the press conference of US Federal Reserve Chairman Jerome Powell, this review will focus on the technical picture for USD/CHF.
Weekly
For a complete understanding of what is happening, let's start analyzing the charts with a weekly timeframe. So, as you can see, after the selected candle, the pair moved to a downward trend. So at the auction on 19-23, the dollar/franc currency pair continued its downward trend. As a result of the decline, the red Tenkan line of the Ichimoku indicator and the blue 50 simple moving average was broken. At the auction of the current five-day period, the bears for USD/CHF intended to continue the pressure on the exchange rate. A little short of the blue Kijun line, the pair found good support and showed strengthening.
Nevertheless, the USD/CHF bulls have a rather difficult task. First, they need to return the price above 50 MA and then consolidate trading above the important and strong technical level of 0.9200. It will be followed by attempts to return the price to the limits of the Ichimoku indicator cloud. However, this is still a long way off. The bears, in turn, need to break through the Kijun line, after which they will open the road to the most important psychological and technical level of 0.9000.
Daily
On the daily price chart, we see that the pair is thoroughly bogged down within the Ichimoku indicator cloud, the exit from which can largely determine the subsequent direction of the quote. It is worth paying attention to the strong resistance of sellers in the area of 0.9173-0.9183, where the trading highs are on April 23, as well as the Tenkan line and the orange 200 exponential moving average. Considering that the significant level of 0.9200 passes slightly higher, the price zone of 0.9170-0.9200 seems technically quite reasonable for opening short positions. At the same time, an additional signal for sales will be the bearish candlestick patterns on this or smaller time intervals. For those who want to buy the USD/CHF pair, I recommend looking at the current support area of 0.9120-0.9100, where the minimum values of yesterday's trading are held, as well as the lower border of the Ichimoku indicator cloud. In conclusion, I will more clearly define the nearest resistance and support for this trading instrument.
Resistance: 0.9170; 0.9200; 0.9220. Support: 0.9150, 0.9120 and 0.9100.
I remind you once again that tomorrow the Fed will sum up the results of its two-day meeting and make a decision on rates. And half an hour after that, Fed Chairman Jerome Powell's press conference will begin. I believe that this is the main event of the current trading week, which can significantly affect the course of trading in the US currency in general and the price dynamics of USD/CHF in particular.
