USD/CHF started the week with moderate growth, continuing last week's upward momentum and trying to consolidate above 0.9020.
Growing demand for the US dollar is accelerating the volatility of currency pairs. The Fed says that the cycle of tightening financial conditions will continue, although it realizes all the risks associated with the effect of rate hikes. Last week, Jerome Powell emphasized that he is not confident that the Fed will finish its job of bringing inflation down to the 2% level.
On Friday, the consumer confidence index from the University of Michigan was released, showing a decline from 63.8 pp to 60.4 pp.
Today in the U.S. will be released a report on the execution of the federal budget. Analysts expect the deficit to decrease from $(-170.0) billion to $(-30.0) billion. Tomorrow the inflation report will be released. Consumer prices are expected to decline from 0.4% to 0.1% (m/m). Also on Tuesday there will be a speech by the head of the NSE Thomas Jordan.
USD/CHF Technical Analysis for today
The Bollinger Bands indicator is turning horizontal. MACD histogram is moving along the zero line and does not give any signals. The Stochastic oscillator is growing steadily.
After consolidation above 0.9050 we move to buy with the target at 0.9100. Stop-loss will be set at 0.9025.
If the quote consolidates below 0.9000, we open short positions with a target at 0.8950. Stop-loss will be set at 0.9025.