FxWirePro- USDCHF Trade Idea

The currency pair gained slightly after the SNB chairman's speech. It hit an intraday high of 0.90713 and is currently trading around 0.90624. The intraday bias appears bearish as long as the resistance level at 0.9150 holds.

On 27 January 2025, the Chairman of SNB Swiss National Bank was on interest rates and economic strategies by the bank. Martin Schlegel told the press that even though it would not use negative interest, they would have a say if anything were to alter in the economic states. The economist further clarified that there could be negative inflation, but he said this aspect would not affect the core policy in place because the stability of prices is concerned. Following his speech, the Swiss franc strengthened a bit against the U.S. dollar. In general, he stated that the bank would closely watch the economy but maintain price stability at the core.

Markets eye Fed monetary policy on Wed for further direction.

Technical Analysis and Resistance Levels

The pair is trading below the 55-EMA and above the 34-EMA on the 4-hour chart indicating a bearish trend. The immediate resistance is at 0.9070 any break above targets is 0.9010/0.9150/0.9200/0.92250/0.9275. 

Support Levels and Potential Declines

On the downside, near-term support is around 0.8960, any violation below will drag the pair to 0.8940/0.8890.

Technical Indicators

CCI (50) - Bearish

Directional movement Index - Neutral

Trading Strategy Recommendation

It is good to sell on rallies around 0.9070 with a stop-loss at 0.91250 for a TP of 0.8890/0.8845.