FX.co ★ USD/CHF technical analysis and forecast for September 20, 2021

At the auction last week, the Swiss franc was subjected to the strongest selling pressure against the US dollar and lost 1.60%. Market participants are still waiting for more specific information from the US Federal Reserve System (FRS) regarding the timing of the start of the curtailment of the quantitative easing (QE) program. In this regard, investors will pay special attention to the extended meeting of the Federal Reserve, the results of which will be announced on Wednesday evening. In addition, since the meeting is extended, there will also be a press conference of the head of the Federal Reserve, Jerome Powell. From the mouth of the main American banker, market participants will wait for more detailed information about the curtailment of the asset purchase program. If Jerome Powell confirms that the curtailment of the quantitative easing program will begin at the end of this year, the US currency will have every chance of strengthening against all its main competitors. Otherwise, the US dollar risks being under the pressure of sales. In general, we will wait for Wednesday evening. However, for now, let's look at the USD/CHF price charts. Moreover, considering the Friday closing of the week, we will start considering the charts from this timeframe.

Weekly

So, following the trading results on September 13-17, a huge bullish candle appeared on the weekly chart with a closing price of 0.9318. USD/CHF bulls managed to close the week above the important technical level of 0.9300. However, they could not get out of the Ichimoku indicator cloud. However, the pair is already trading above the cloud, but so far without clearly defined dynamics. At this stage of time, it is quite difficult to determine the further direction of the price. A lot will depend on the Fed's decision on rates and the speech of Jerome Powell. Judging by the weekly timeframe, the bulls' target may be the price area of 0.9460-0.9470, where the orange 200 exponentials moving average and the brown resistance level pass. In the case of a pair's reversal in the south direction, the quote will return to the limits of the Ichimoku indicator cloud and risk falling into the price zone of 0.9200-0.9175. Since this is a one-week time period, the guidelines are quite ambitious. Let's see what the situation is on a smaller graph.

Daily

On the daily chart, it is visible that nothing prevents the pair from climbing to the area of 0.9470 in this situation. From the technical side, there are no significant strong and important resistances. Although, given the recent history, we see resistance from sellers at 0.9374, which may be reanimated. In this regard, I propose to observe the behavior of the price near this mark and, if there are reversal patterns of candle analysis on this or lower timeframes, try selling with targets in the area of 0.9320-0.9300. In the meantime, taking into account the huge last weekly candle, all the prerequisites for the continuation of the upward movement remain, so purchases now look like the main trading idea. I suggest considering the opening of long positions after the short-term declines of the pair to the area of 0.9300 and the appearance of reversal patterns of Japanese candlesticks on the four-hour and hourly charts there. That's all for now. With a high degree of probability, I can assume that in the coming days, we will return to the consideration of the USD/CHF currency pair and, if necessary, make adjustments to this forecast and trading ideas.