Comprehensive USD/CHF Analysis for January 17, 2024

In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the USD/CHF for 17th January 2024. 

USD/CHF Key Takeaways

• CHFUSD is ready to appreciate: The Swiss franc achieved its best performance since 2011 in December last year. This year, with the Federal Reserve expected to cut interest rates, there is still a possibility that the Swiss franc will continue to appreciate. The current CFTC position report shows that asset managements’ long positions in the Swiss franc continue to rise. 
• Interest rate cut in doubts: Fed Governor Waller made hawkish remarks yesterday, and whether the Fed can cut interest rates in March is again in question. The U.S. dollar index rose sharply and returned to above 103. 

USD/CHF Technical Analysis 

USD/CHF Daily Chart Insights

• Stochastic Oscillator: The indicator has been rising from the low point and entered the overbought area without consolidation, suggesting that bulls currently have the upper hand. Before a clear short signal is sent, you cannot go short at will. 
• Moving average combination: The blue 17-day moving average was broken yesterday, which means that the short-term downward trend of the USDCHF has been destroyed, and this week will enter consolidation or reverse upward. 

USD/CHF 1-hour Chart Analysis

• Stochastic Oscillator: The indicator fluctuates in the overbought area, but the exchange rate has hit an intraday high. The top divergence pattern implies that there are risks in entering the long position at this time. 
• Moving average support: The blue 17-period moving average continues to support the upward trend of the market. Before falling below the moving average support, the exchange rate is still dominated by bulls. Judging from the stochastic oscillator, the risk of going long in the exchange rate is relatively high at present. It is not advisable to hold long-term long orders. Be wary of rapid downward trends after the exchange rate forms a false breakthrough. 

Trading Central Pivot Indicator

• According to the trading central in Ultima Markets APP, the central price of the day is established at 0.8585, 
• Bullish Scenario: Bullish sentiment prevails above 0.8585, first target 0.8630, second target 0.8650; 
• Bearish Outlook: In a bearish scenario below 0.8585, first target 0.8570, second target 0.8555. 

Conclusion