USDCHF Falls Below 0.8500 Ahead of Swiss CPI and GDP Data

Technical Analysis

The USDCHF pair fell below the 0.8500 support level on Friday, reaching its lowest point since September 2021. The pair has been under pressure since it failed to break above the 0.8600 resistance level in August. * The relative strength index (RSI) on the daily chart is below 50, indicating that the bears are in control of the market. * The moving average convergence divergence (MACD) indicator is also below its signal line, indicating that the downtrend is likely to continue.

Fundamental Analysis

The Swiss franc has been strengthening against the US dollar in recent weeks due to a number of factors, including: * The Swiss National Bank (SNB) has been intervening in the foreign exchange market to support the franc. * The US dollar has been weakening against a number of other currencies, including the euro and the yen. * The Swiss economy is expected to grow by 2.1% in 2023, according to the International Monetary Fund (IMF). This is faster than the projected growth rate for the US economy of 1.6%.

Upcoming Data Releases

The next major data release for Switzerland is the consumer price index (CPI) for August, which is due out on September 6th. The CPI is a measure of inflation, and a higher-than-expected reading could support the Swiss franc. The Swiss GDP for the second quarter of 2023 is also due out on September 6th. A strong GDP reading could further boost the franc.

Trading Strategy

Traders who are looking to trade the USDCHF pair should consider the following: * The pair is likely to continue to move lower in the near term. * A break below the 0.8450 support level could open the door to a further decline towards the 0.8400 level. * Traders who are looking to short the pair should place a stop-loss order above the 0.8550 resistance level. * Traders who are looking to buy the pair should wait for a break above the 0.8550 resistance level before entering a long position.

Disclaimer

The information provided in this article is for informational purposes only and should not be construed as financial advice. Trading forex carries a high level of risk and you should always do your own research before trading.