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USDCHF stays bearish as SNB week beginsUSDCHF eyes another visit to the yearly low, after a two-week downtrend, as it braces for the Swiss National Bank (SNB) Interest Rate Decision, expected 1.75% versus 1.50% prior. In doing so, the Swiss Franc (CHF) pair fades Friday’s bounce off the lowest levels in five weeks by retreating from the 61.8% Fibonacci retracement of its May 04-31 upside. Given the below 50.0 levels of the RSI (14) line, it is likely to witness a bumpy road towards the south, suggesting a bounce off the 78.6% Fibonacci retracement level of 0.8890. In a case where the quote fails to recover from 0.8890, the yearly low of around 0.8820 marked in the last month will be in the spotlight. It’s worth noting that the pair’s weakness past 0.8820 highlights the yearly 2021 bottom surrounding 0.8757 as the last defense of the buyers. On the contrary, USDCHF recovery may initially aim for the 50% Fibonacci retracement level of 0.8980. Following that, a convergence of the 200-SMA and a one-week-old descending resistance line of around 0.9000 will be in focus. Should the quote manage to remain firmer past 0.9000, the bulls can aim for 0.9030 ahead of confronting multiple hurdles around 0.9110. It’s worth noting that the previous monthly high of around 0.9150 is the last stand for the bears, a break of which could allow the buyers to aim for the yearly high of 0.9440 marked in February.
by MTradingGlobal
USDCHF rebounds from key support ahead of Swiss inflationUSDCHF snapped a two-week downtrend while bouncing off 100-DMA and a horizontal area from April 20. The corrective pullback, however, failed to provide a daily closing beyond multiple hurdles surrounding 0.9620. That said, the MACD and the RSI (14) also hint at the pair’s weakness ahead of June’s Consumer Price Index (CPI) for Switzerland. It’s worth noting that sellers could witness a pullback on firmer readings but the aforementioned horizontal support and the 100-DMA, respectively near 0.9540 and 0.9520, will be crucial for bearish confirmation. Should the quote drop below 0.9520, the odds of witnessing a slump towards March’s high, also the 61.8% Fibonacci retracement of January-May upside, near 0.9460, can’t be ruled out. On the contrary, downbeat Swiss data may extend the latest recovery towards breaking the 0.9620 resistance, a break of which could direct the run-up to the 38.2% Fibonacci retracement level of 0.9700. During the USDCHF advances past 0.9700, the 0.9715-20 area may act as a validation point for the north-run targeting the lows marked during early May and June, close to 0.9860. Overall, USDCHF remains on the bear’s radar unless crossing 0.9620 but the further downside needs validation from 0.9520.
by MTradingGlobal
USDCHF pullback is in the offing, focus on SNB’s JordanUSDCHF prints a five-day uptrend to refresh the yearly high at around 0.9460. The pair’s latest upswing took place from the 21-DMA and monthly support line. However, the overbought RSI and April 2021 peak near 0.9475 challenge the pair buyers ahead of a speech from the Swiss National Bank (SNB) Chairman Thomas Jordan. Even if the quote rises past 0.9475, an upward sloping trend line from late September, around 0.9485, will act like a tough nut to crack for the bulls. Also acting as an upward barrier is the 0.9500 psychological magnet. Alternatively, pullback moves may initially aim for the 0.9400 threshold before testing the short-term support line surrounding 0.9350. Even if the USDCHF bears manage to conquer the nearby trend line support, the 21-DMA level of 0.9326 and the 0.9300 round figure could entertain them. It’s worth noting, however, that the latest swing low, marked on March 31 around 0.9195, becomes important support to watch during the pair’s declines past-0.9300. Overall, the USDCHF upside is likely to fade soon and hence today’s speech from SNB Chief Jordan will be important to watch.
by MTradingGlobal
USDCHF approaches key hurdle ahead of SNB, US GDPUSDCHF extends the early week’s bounce-off 21-day SMA while directing bulls towards the key horizontal resistance ahead of the Swiss National Bank’s (SNB) monetary policy meeting. Given the overbought RSI conditions and the SNB’s anticipated hawkish tone, despite no range expectations, the pair is likely to step back from 0.9375-80 resistance area comprising multiple levels marked since June 11. However, 50% Fibonacci Retracement of March 2020 to January 2021 downside, at 0.9325, followed by a 21-day SMA level of 0.9236, can restrict the quote’s pullback moves. Meanwhile, an upside clearance of 0.9380 will trigger a rally targeting the 61.8% Fibonacci retracement level of 0.9465. Though, the 0.9400 round-figure can offer an intermediate halt during the rise. In a case where the USD/CHF bulls keep the reins past-0.9465, the June tops near mid-0.9500s will be the key to watch.
Short
by MTradingGlobal