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  • Philadelphia Federal Reserve President Patrick Harker restated Fed’s determination to bring down inflation.
  • The US housing market continues to suffer amid higher interest rates.
  • The US labor market continues to be strong, posing a challenge to the Fed.

Today’s USD/CHF price analysis is bullish as dollar strength pushes the pair higher. The dollar soared after Philadelphia Federal Reserve President Patrick Harker said that the central bank would “keep raising rates for a while.”

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“Harper’s comments confirmed that the Fed is all in on continued aggressive policy and future (interest) rate increases,” said Ryan Detrick, chief market strategist at Carson Group in Omaha.

According to CME’s FedWatch tool, financial markets have already completely priced a further 75 basis point increase in interest rates from the Federal Reserve when it meets next month.

Sales of existing US homes declined for an eighth consecutive month in September and are anticipated to decline further in the coming months. The housing market continues to stand out as the economic sector is being struck the hardest by the Federal Reserve’s aggressive interest rate hikes.

However, the US labor market and consumer spending have exhibited little change, suggesting the Fed may still need to strive to reduce the overall demand, which is keeping pricing pressures high.

The Labor Department reported an unexpected decrease in the number of people applying for unemployment benefits for the first-time last week. For October 15, the Labor Department reported an unexpected 12,000 decrease in initial claims for state unemployment benefits, bringing the total to a seasonally adjusted 214,000.

USD/CHF key events today

The pair will likely have a quiet trading session today as there won’t be any significant news releases from the US or Switzerland.

USD/CHF technical price analysis: Bulls succeed at breaking above-range resistance

USD/CHF price analysis

Looking at the 4-hour chart, we see the price trading above the 30-SMA and the RSI above 50, a sign that bulls are in control. However, a closer look shows the price has been trading within a bigger consolidation with resistance at 1.0065 and support at 0.9925.

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At the same time, we see the price respecting the 30-SMA as support, showing the price is ready to trade above the consolidation. The bullish trend will only continue if the price breaks and successfully closes above the range resistance.

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