USDCHF 1H Chart: Rebound might halt as Downtrend Trendline near.

30 июл.

Current Situation:

The USDCHF is exhibiting a downtrend on the hourly chart. Recently, the pair has rebounded and is now approaching a critical area where the downtrend trendline intersects with the resistance level at 0.88800. This confluence of resistance factors could present a strong selling force, potentially halting the current rebound.

Technical Analysis:

1. Downtrend Trendline
2. Resistance Level 0.88800

Fundamental Analysis:

1. Upcoming US FOMC Meeting: The US Federal Open Market Committee (FOMC) meeting is imminent. While a rate cut is not widely expected, the tone of the speech—whether dovish or hawkish—could significantly impact the USDCHF pair.

2. Market Concerns:

- Dovish Tone: If the FOMC's communication suggests a dovish stance, indicating potential rate cuts in the future, the USD could weaken & cause USDCHF to drop.

- Hawkish Tone: Conversely, if the FOMC adopts a hawkish tone, indicating a preference for maintaining rates, the USD could strengthen.

Conclusion:

Traders should closely monitor the USDCHF as it approaches the critical resistance zone around 0.88800. The combination of the downtrend trendline and the horizontal resistance level presents a significant hurdle for the pair.

Additionally, the upcoming FOMC meeting adds an element of uncertainty, with the potential for market-moving announcements. The prudent approach would be to look for signs of rejection at the resistance zone for potential short positions, while also being prepared for a breakout scenario should the FOMC deliver unexpected news.