USD-CHF Prints Double-Top Following Hawkish SNBNovember 10, 2022
- USDCHF has exhibited a massive bearish trend.
- Thomas Jordan believes the SNB will keep hiking rates.
- The pair may keep plummeting as it printed a double-top formation.
USD-CHF saw its price drop to the lowest mark since 27 October. That came after market participants responded to Thomas Jordan’s hawkish statement. The pair plummeted toward the 0.9885 low, nearly 2.5% beneath last Friday’s highest mark.
SNB to Keep Hiking
The USDCHF price extended its downsides after Swiss National Bank’s Thomas Jordan presented a hawkish statement. Jordan dominated the forex news when he stated that the central bank has no plans to stop hiking rates.
He highlighted that the bank considered more rate increases or adopting a wait-to-see strategy to combat inflation, which climbed to 3% in October. Swiss inflation remains substantially lower than the likes of Australia, France, and Germany.
Nevertheless, the past nine months saw it soaring gradually, exploring its highest mark in nearly three decades. Jordan stated that determined action remains necessary amidst massive shocks that heighten the danger of persistent inflation moving away from the targeted range.
Meanwhile, the Swiss National Bank has surprised analysts in 2022 by executing rate hikes twice. Jordan highlighted that economists anticipate another 50 basis points hike come December. Also, the USDCHF price plunged as market participants await the results of the mid-term elections today.
Most polls suggest a massive Republican dominance in the House of Representatives. Also, they might govern the Senate. Nevertheless, analysts trust the election outcome won’t affect the US economy massively.
Moreover, the USD-CHF price will respond to today’s US consumer inflation numbers. Analysts expect the numbers to indicate that inflation stayed elevated in October. That means the Federal Reserve has a chance for more hikes in the upcoming months.
The 4hr chart indicates the USDCHF price created a double-top setup at 1.0145 – a bearish signal. The current price remains briefly beyond the head-shoulders pattern neckline. Also, the pair printed a bearish flag formation.
Thus, it might exhibit a bearish breakout during the upcoming days. That would reveal 0.9750 as the next support. Meanwhile, upside tendencies would open the path to 0.9950.