After suffering sharp downfall the USD/CHF pair
reversed the trend in mid February. Currently the price is hovering around the psychological
0.9500 hurdle also 38.2% Fibonacci retracement of latest October 2017 to
February bearish run. Bulls had tried to push higher and tested several times
the 0.9550 area but it seems that do not have enough power to break-out to
further highs and after have been swinging back and forth returned to the
sheltered area around 0.9500.
While the short term bullish outlook develops, the long term remains bearish.
The Swiss Frank has taken a break, but on the other hand the greenback is
gathering strength having DXY at some 90 and the upcoming Fed’s rate hike. From
this viewpoint to confirm a bullish continuation the pair should leave the inhabited
area and to turn it into support and fight the 0.9550 level.
Alternatively
the swing-low at 0 .9480 could open the doors for testing 0.9420 and in case
this happens the bearish tonality will sound again. However I hope this
undecided situation to come to an end next days having generous macro data from
both sides and a new catalyst to set more clear direction.
No comments:
Post a Comment