The USDCHF prices will again test the resistance level of 0.9

07 July 2023 168
The USDCHF prices will again test the resistance level of 0.9

The USDCHF currency pair continues to test the resistance level of 0.9. This level isn’t yet consolidated, but the rising lows clearly indicate an increasing activity on the part of the bulls. A short-term uptrend, which supports the new growth attempts of the USDCHF, was formed. Today buyers have a good opportunity to get up to 0.9.


On Thursday the US dollar almost completely ignored a strong set of economic statistics on the labor market and business activity indices. Market participants probably have been focused on the number of job openings, which fell below 10 million. In fact, that was the only one of yesterday's numbers that was worse than forecasted. Otherwise the US economy continues to be stable.


Such statistics once again confirms the need for additional monetary policy tightening. The day before, the Federal Reserve Bank of Dallas Governor Lorie Logan said she was in favor of higher interest rates at the June FOMC meeting, but eventually agreed with the calls for interest rate hikes to be paused. In any case, Logan continues to hold the view that at least 2 more rate hikes are needed, as do 2/3 of this year's meetings voting Fed members.


A new batch of statistics on the US economy may support the dollar growth against the franc. Today the Labor Department will present its official labor market data for June. After yesterday's figures from ADP the expectations are quite high but in the last months the labor market data was seldom weak. Therefore, the USDCHF has a good chance for a new wave of growth.


The main short-term target for the USDCHF buyers is still the round level of 0.9. The growth scenario remains the main one until the prices break through the uptrend line and consolidate under the level of 0.893.


The following trading strategy can be suggested:


Buy the USDCHF in the range of 0.895–0.896. Take profit — 0.9. Stop loss — 0.893.


Traders can also use a Trailing stop instead of a fixed Stop loss at their discretion.

This content is for informational purposes only and is not intended to be investing advice.

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