I spy with my eye a potential support area for USD/CHF!
In case you missed it, the pair recently tumbled following the release of mid-tier U.S. economic data supporting a Fed rate hike as soon as this year.
Of course, it didn’t hurt CHF that Switzerland also dropped a better-than-expected GDP report AND that Swiss National Bank (SNB) Thomas Jordan recently shared his concerns over upward risks to inflation.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your fundie homework on the U.S. dollar and the Swiss franc, then it’s time to check out the economic calendar and stay updated on daily fundamental news!USD/CHF: 4-hour
USD/CHF 4-hour Forex Chart by TradingView
USD/CHF, which was trading around .9140, dropped like a rock and is now closer to the .9040 levels.
How low can USD/CHF go before the bulls step in?
The pair may see some demand from its current levels as they line up with the S2 (.9041) Pivot Point line in the 4-hour time frame.
Or USD/CHF could trade a bit lower and then find buyers at the .9000 psychological handle that has been supporting the pair since late March.
If USD/CHF does turn higher from the potential support area, then we can bet that at least some traders may consider the .9150 Pivot Point area and .9160 previous area of interest as targets.
But if USD/CHF extends its downswing and falls through the range support zone, then the pair may hit lower inflection points like .8960 or .8890.
What do you think? Will USD/CHF’s range support hold for another day?