USD/CHF Price Forecast: Pair extends recovery above key moving averages
USD/CHF ticks higher on Tuesday as the US Dollar (USD) recoups most of the previous day’s losses. Hawkish Federal Reserve (Fed) expectations and rising US Treasury yields keep the Greenback underpinned near its recent highs.
The USD/CHF pair extended its recovery above key moving averages on Tuesday, trading around 0.8103, up roughly 0.24% on the day. This move was driven by hawkish Federal Reserve expectations and rising US Treasury yields, which supported the US Dollar. Chair Kevin Warsh's tough stance on inflation at the Jackson Hole Symposium bolstered these expectations, with traders now seeing a 65% probability of a rate hike at the upcoming September 15-16 meeting, according to the CME FedWatch Tool.
Meanwhile, subdued inflation in Switzerland and the SNB's policy rate of 0% kept the Swiss Franc under pressure, with headline inflation expected to remain flat on a monthly basis and the annual rate increasing to 0.5% from 0.4%. On the daily chart, USD/CHF was holding above the 50-day SMA at 0.8091, providing immediate support, with the 100-day SMA at 0.7987 and the 200-day SMA at 0.7934 further reinforcing a bullish outlook.
The RSI near 54 suggested moderate upside momentum, while the MACD had turned slightly positive, indicating rebuilding buying pressure. Resistance lay at the horizontal barrier at 0.8150, followed by a higher cap at 0.8200, while support could be found at the 50-day SMA and the next cluster of longer-term SMAs at 0.7987 and 0.7934.
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