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The USD/CHF currency pair has recorded a 0.12% increase today, marking its sixth consecutive day of gains. This upward trend has seen the pair rise from a recent low of 0.81822 to a high of 0.83580, representing an approximate gain of 2.15% or 176 pips. The recent rally has been fueled by a divergence in monetary policy between the Swiss National Bank and the U.S. Federal Reserve, with the latter recently raising interest rates by 25 basis points and indicating the possibility of another hike before the end of the year.
The Swiss National Bank opted to keep its rates unchanged at its latest meeting, contributing to a supportive environment for the U.S. dollar against the Swiss franc. Market expectations currently suggest a 40% chance of an additional rate hike in October and nearly a 100% likelihood of a hike by year-end. Despite this positive backdrop for the dollar, the pair is approaching key resistance levels, which could lead to a technical correction after six days of gains.
Traders are closely monitoring the resistance level at 0.83485, which was briefly surpassed but not sustained. The pair's ability to maintain trading above this level is crucial for continued upward momentum. If the price can break through the recent highs of 0.83540 and 0.83580, it may pave the way towards the next significant target at 0.8400, a level that represents both a natural resistance point and a 50% retracement of previous declines. Conversely, if the pair fails to hold above 0.83134, the rising 100-hour moving average, it could signal a shift in control towards sellers, increasing the likelihood of a deeper correction.
Source: KLEA News