USD/CHF edges up following Fed Golsbee’s comments

The US Dollar has retraced losses and is now at levels below 0.9100. A doji candle in the weekly chart and bearish divergence on intra-day charts suggest a deeper correction. USD/CHF bears need to breach the 0.9075 support level to confirm a trend shift.

The Federal Reserve is likely to keep rates at high levels for a longer time, while the SNB has already cut rates and is likely to cut them again later this year. The pair has been trading without a clear direction below the 0.9145 resistance area, with a doji candle in the weekly chart and a bearish divergence on the 4-hour chart pointing to a potential correction.

Bears need to confirm below 0.9075 to confirm a trend shift. The next targets are the 0.9000 area and the trendline support at 0.8980. A bullish reaction beyond 0.9245 would expose October’s high at 0.9240.