Well, the assumption that the dollar/franc currency pair has completed its downward trend and is consolidating before the beginning of its change last week was fully justified. Before proceeding to the price charts, I would like to remind you that at the auction on June 14-18, the US currency significantly strengthened against all major competitors, among which the Swiss franc was no exception. Such dynamics of the US dollar were greatly influenced by the results of the June meeting of the US Federal Reserve System (FRS), following which the regulator tightened its rhetoric. In particular, the head of the Federal Reserve, Jerome Powell, expressed the opinion that if inflation is fixed above 2% for a longer time, the Federal Reserve will have to take steps aimed at tightening monetary policy, which implies an increase in the interest rate. Let me remind you that at the moment, seven members of the Open Market Committee (FOMC) believe that rates can be revised upwards no earlier than mid-2022.
Weekly
A huge bullish candle, which appeared at the end of last week's trading, is the best indication of the break that occurred in USD/CHF. Earlier, there was a consolidation of the pair, and it was assumed either a continuation of the downward trend or a change in the trend. At the same time, the last option was given more chances. During the strongest growth observed last week, the pair broke through several strong and important resistance levels, returned above the landmark level of 0.9000, and confidently entered the limits of the weekly Ichimoku indicator cloud, closing the week at 0.9225. If this is a trend change, and such a candle can not be called a pullback, then the growth is likely to continue, and its next target will be the price area of 0.9290-0.9310. It is another significant and strong technical zone, the passage of which will determine the prospects for the price movement of USD/CHF. In the meantime, after such rapid growth, the pair is slightly corrected. However, this correction is more similar to consolidation. If correctly interpreted — the pair is corrected in a relatively narrow sideways range or simply in a sideways direction.
Daily
Looking at the daily timeframe, it becomes clear why the author constantly mentions the Ichimoku indicator in his articles, namely the upper and lower boundaries of its cloud. Here you can see how difficult it is for USD/CHF bulls to bring the price up in their daily cloud. And this is despite such strong upward momentum. It was impossible to do this either on Friday or on the first day of the new trading week. I would venture to assume that the pair will still come out of the daily cloud, which will open the way for it to 0.9260 and 0.9300. At the same time, the breakdown of the last mark will leave no doubt about the further upward scenario for the dollar/franc. In this case, such values as 0.9400, 0.9460, and the psychological level of 0.9500 will appear on the horizon of buyers. However, it is still too early to talk about this. It would help if you had a clear and confident consolidation above the strong technical zone of 0.9200-0.9225, after which, on a pullback to this area, you should think about opening buy deals, which may well turn out to be medium-term. If we consider the opening of purchases from the depth and at more attractive low prices, I recommend paying attention to the area of 0.9170-0.9150.
