USDCHF: bullish momentum still exists

Fundamental analysis:

Blackrock Group advises investors to underweight developed market stocks because a looming recession will be a bigger problem for stocks than any potential upside from the U.S. midterm election results. Historically, stocks have done well after midterm elections, but the threat of a recession caused by a Fed rate hike could overshadow the positive post-election impact as inflation remains high, BlackRock said.

Daily chart of USD/CHF USDCHF

Technical analysis:

The daily chart shows that the short-term exchange rate surges high and then falls back to narrow range finishing, MACD runs on the 0 axis but can shrink slightly, RSI weakens slightly, it is expected that the short-term exchange rate will be more likely to backtest finishing, and there is further upside potential in the medium term.

Long-short turning point: 0.9800

Pressure position: 1.0000 1.0200

Support level: 0.9600 0.9400

Trading strategy: Bullish above 0.9800, targets 1.0000, 1.0200

Alternative strategy: Bearish below 0.9800, target 0.9600, 0.9400