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USDCHF

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 retreats from crucial resistance zone ahead of Swiss GDPUSDCHF posted weekly gains but eased from the short-term key horizontal area as Ukraine-Russia headlines controlled safe-haven pairs. That said, the risk-barometer currency pair retreated from a seven-week-old broad resistance zone, between 0.9275 and 0.9295, by the end of Friday. In addition to the market’s risk appetite, Swiss Q4 GDP will also make USDCHF interesting, not to forget the latest pullback. Hence, a firmer GDP and improvement in the market’s mood may extend the recent declines towards the 100-SMA level near 0.9220 before challenging the latest swing low near 0.9165. In a case where the quote drops below 0.9165, the monthly bottom and 78.6% Fibonacci retracement of January’s upside, surrounding 0.9150, will be crucial to watch for the bears. Meanwhile, an extended risk-aversion wave, coupled with downbeat Q4 GDP will propel the USDCHF prices to battle the 0.9275-95 zone. Also acting as an upside filter is the 0.9300 threshold. Should the pair rise past-0.9300, January’s peak of 0.9340 will test the bulls ahead of directing them to November 2021 high close to 0.9375. Overall, USDCHF may witness pullback moves should the Swiss GDP come in stronger than 0.3% expected. It’s worth noting that easing pessimism and a firmer reading near or beyond the previous 1.7% will be a boost to the pair’s downside momentum.
by MTradingGlobal