USD/CHF continues consolidating, loses the 20-day SMA

• USD/CHF declined towards 0.9040,  consolidating below the 20-day SMA.
• Federal Reserve officials will be on the wires later in the session.
• FOMC minutes on Wednesday and CPI figures from September from the US the next week highlights.

The USD/CHF declined near the 0.9040 level and tallied its fifth straight day of losses. For the US Dollar, the economic calendar will remain empty on Tuesday. The only highlights are Christopher Waller and Neel Kashkari from the Federal Reserve (Fed) speaking later in the session. As Lorie Logan stated yesterday, tighter financial conditions may put less pressure on the Fed to continue hiking; both speakers could generate volatility in the bond markets if they provide clues on forward guidance and affect the US Dollar price dynamics. Likewise, no relevant reports or data will be released on the Swiss economic calendar.

In the meantime, the focus is set on Wednesday’s Federal Open Market (FOMC) minutes from the September meeting, where investors will look for further clues on the Fed official's stance. In addition, the US September inflation figures are due on Thursday, which are expected to see the headline and core Consumer Price Index (CPI) decelerating. Furthermore, traders should monitor the conflict in Israel as growing tensions could benefit the US Dollar as a safe haven.

USD/CHF Levels to watch 

The daily chart analysis indicates a bearish outlook for the USD/CHF in the short term. The Relative Strength Index (RSI) is below its midline in negative territory, with a negative slope, aligning with the negative signal from the Moving Average Convergence Divergence (MACD), which displays red bars, reinforcing the strong bearish sentiment. Additionally, the pair is below the 20-day Simple Moving Average (SMA), but above the 100 and 200-day SMAs, suggesting that the bulls are in command over the bears on the bigger picture.

Support levels: 0.9050, 0.9030, 0.9000.

 Resistance levels: 0.9073 (20-day SMA), 0.9150, 0.9170.
 

USD/CHF Daily Chart