USD/CHF At Risk of More Losses, Oil Price Rises

#OPINIONLEADER#

Key Highlights

• USD/CHF started a fresh decline below the 1.0000 support.
• It traded below a major bullish trend line with support at 0.9980 on the 4-hours chart.
• Crude oil price climbed higher above the $88 resistance zone.
• The US Gross Domestic Product could grow 2.4% in Q3 2022 (Preliminary), up from -0.6%.

USD/CHF Technical Analysis

The US Dollar started a major decline after it failed to stay above the 1.0120 resistance against the Swiss France. USD/CHF traded below 1.0000 to move into a bearish zone.

Looking at the 4-hours chart, the pair declined below the 0.9950 support zone and the 100 simple moving average (red, 4-hours). Moreover, there was a break below a major bullish trend line with support at 0.9980 on the same chart.

The pair even broke the 0.9920 support and traded as low as 0.9841. It is now consolidating losses above the 200 simple moving average (green, 4-hours).

An initial support is near the 0.9850 level and the 200 simple moving average (green, 4-hours). The next major support is near the 0.9800 zone. A downside break below the 0.9800 zone could push the pair further into a bearish zone.

On the upside, an immediate resistance is near the 0.9900 zone. The next major resistance may perhaps be near 0.9950 or the 100 simple moving average (red, 4-hours). Any more gains could set the pace for a move towards the 1.0000 level.

Looking at crude oil price, there was a steady increase above the $88 resistance and seems like there are chances of more upsides.

Economic Releases

• US Initial Jobless Claims – Forecast 220K, versus 214K previous.
• US Gross Domestic Product Q3 2022 (Preliminary) – Forecast 2.4% versus previous -0.6%.
• ECB Interest Rate Decision – Forecast 2.00%, versus 1.25% previous.