On Tuesday, the dollar slid but remained in previous ranges as investors waited for U.S. Federal Reserve Chair Jerome Powell to address a congressional hearing later in the day.
Investors are anticipating that Powell will provide clues as to when the Fed will tighten monetary policy during his testimony before the Senate Banking Committee for a second four-year term as head of the Federal Reserve.
The formation of the USDCHF currency pair suggests a horizontal trend that moves inside a large green channel with a slight upward slope. The 1H timeframe shows the period of market movement from the beginning of December to the present day.
Throughout December, the market moved smoothly in the flat, slowly sinking to the lower green line. By the beginning of the new year, the price reached the lower green wall, after which we saw a market reversal and the beginning of a bullish movement inside a small yellow channel.
Recently, the price dropped to the yellow support line, but could not break through it. Perhaps in the near future, the bears will lead the market down again. Their first target is the support level of 0.938, located on the lower yellow wall. In case of its breakdown, the bears will open the way to the next important support level of 0.910, which is located on the lower green line.
Alternatively, an upward movement of the market is expected inside the yellow channel in the direction of the resistance level of 0.927, which is located on the upper green line. We see that there are no obstacles in the way of bulls, which means that with sufficient bullish strength, the price can rise to the intended level.
If the bullish trend is confirmed, we could make money on purchase transactions. With a bearish trend, it is worth considering opening sales deals.
