USD/CHF Rose As Hawkish Fed Lift Dollar

Fundamental Analysis

*Hawk Watch: The USD/CHF extends its recovery as hawkish Fed expectations bolster the U.S. dollar. Recent data showed that U.S. consumer prices rose at their fastest pace in nearly 18 months in January, reinforcing the Fed’s stance that rate cuts are not imminent despite economic uncertainties. Fed officials remain cautious, with the sentiment index on the daily chart still reflecting a hawkish outlook. Meanwhile, geopolitical tensions add further support to the greenback, as U.S.-Russia talks in Riyadh make no progress. Russia deems a Trump-Putin meeting unnecessary due to unresolved demands, diminishing hopes for a ceasefire. Ukrainian President Volodymyr Zelensky insists that any “fair” negotiations must include Ukraine and Europe, adding to the broader risk-off sentiment in markets.

Technical Analysis

*Technical Breakout: USDCHF was traded higher following prior breakout above the previous resistance level 0.90250. MACD which illustrate bullish bias signal with the formation of golden cross suggest the pair to likely extend its gains.

* Resistance and Support: : If the bullish momentum persists, there’s a strong likelihood that the price will potentially head towards the level 0.91650. Conversely, a potential reversal is also to be expected and the price could head back towards 0.88800 after it breach back below the level 0.90250.

Understand how technical analysis can help you in this trading opportunity.

Potential Risks

Looking ahead, traders will seek further direction from key upcoming events this week, including the FOMC Meeting Minutes, S&P Global Manufacturing and Services PMI, and speeches from President Donald Trump.

Know how to manage trading risks with risk management strategies.

Monitoring

Stay updated on US and Switzerland data, global market updates, central bank updates and any shifts in the US Dollar’s strength by following PU Prime’s market insights and daily financial news.

Grab the trading opportunity and dive into the action risk-free with a free demo account. It is the perfect way to hone your skills and explore the exciting world of trading!

Open Your Free Demo Account And Start Trading Risk-Free

Join Now

Disclaimer: Trading derivatives involves high risks, and market conditions can change rapidly. The content is for informational purposes only and should not be considered as financial advice. Traders should conduct their own research and consider risk management strategies.