Fundamental
Overview
The US Dollar started the
week on the backfoot as the odds of a Harris victory jumped higher leading to a
pullback in the Trump’s trades.
Everything hinges on the US
election now with a red sweep seen as the most bullish scenario for the
greenback, while a blue sweep as the most bearish.
The price action will
likely be choppy until we start to get a better sense of who’s going to win, so
the best strategy would be to wait for the results, because the trend that will
be set will likely last for months anyway.
USDCHF
Technical Analysis – Daily Timeframe
USDCHF Daily
On the daily chart, we can
see that USDCHF rejected the key resistance zone around the 0.87 handle where
we had also the trendline for confluence.
The sellers stepped in with
a defined risk above the trendline to position for a drop into the 0.8333
level. The buyers, on the other hand, will want to see the price breaking
higher to increase the bullish bets into new highs.
USDCHF Technical
Analysis – 4 hour Timeframe
USDCHF 4 hour
On the 4 hour chart, we can
see that that the price is approaching the support zone around the 0.86 handle.
That’s where we can expect the buyers to step in with a defined risk below the level
to position for the break above the key trendline. The sellers, on the other
hand, will want to see the price breaking lower to increase the bearish bets
into the 0.8333 level.
USDCHF Technical
Analysis – 1 hour Timeframe
USDCHF 1 hour
On the 1 hour chart, we can
see more clearly the rangebound price action as the market awaits the US
election result. There’s not much to add here as the buyers will look for a
bounce, while the sellers will look for a break. The red lines define the average daily range for today.
Upcoming
Catalysts
Today is the US Presidential Election Day but we will also get the US ISM
Services PMI report. On Thursday, we have the US
Jobless Claims and the FOMC Policy Decision. On Friday, we conclude the week
with the University of Michigan Consumer Sentiment report.