USD/CHF Heads to 0.8850 Before Yellen Speech

FXOpen

USD/CHF extended upside movement on Tuesday after bottoming near 0.8743 last week. The pair is expected to print a Higher High (HH) above the 0.8952 resistance area. The speech by Fed chair which is due today will provide more clear direction to the pair.

Technical Analysis

As of this writing, USD/CHF is being traded near 0.8804. A support can be noted near 0.8726, the 161.8% fib level, ahead of 0.8698 that is the low of the previous wave. A break and daily closing below the 0.8700 handle will turn the sentiment to bearish, exposing further dips below the 0.8650 level.

usdchf

On the upside, the pair is expected to face a hurdle near 0.8813, the low of the previous wave, before 0.8846 which is the confluence of 76.4% fib level, and 55 & 100 MA on the four-hour chart.

Swiss Producer Prices

Producer and import prices in Switzerland declined less than expectations by 0.7% in March as compared to 0.8% decline in the same month of the year before, according to the government report. The data came better than the median projection of analysts, calling for a decline by 0.8%. 

Yellen Speech

The Fed chairperson Yellen is scheduled to speak today. Her remarks might incite high volatility in the financial markets. She might give some clues on the future stimulus outlook of the US amid FOMC meeting which is going to be held at the end of this month. The dollar might strengthen on hawkish remarks by the Fed chair and vice versa.

Conclusion

The sentiment is very bullish for USD/CHF, buying the pair on dips might be a good strategy, placing the stop loss just below the 0.8700 handle, target should be at least 0.8850. Not to mention, US inflation report is also due today in the US session which could also incite high volatility in the pair. 

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Stay ahead of the market!

Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.

forex

Forex Trading with FXOpen

Forex Trading with FXOpen

Experience ECN technology for deep liquidity and light-speed trade execution

  • Access over 50 markets
  • Trade with spreads from 0.0 pips
  • Take advantage of commissions from $1.50/lot
Learn more

Latest articles

 Euro in Focus – Markets on Alert
Forex Analysis

Euro in Focus – Markets on Alert

The euro is holding firm after a notable rally in recent weeks. Both the EUR/USD and EUR/JPY currency pairs are showing signs of consolidation, as markets cautiously assess the outlook against the backdrop of a packed economic calendar.

Nvidia Market Capitalisation Reaches $4 Trillion
Shares

Nvidia Market Capitalisation Reaches $4 Trillion

Yesterday, Nvidia’s (NVDA) share price surpassed $162 for the first time in history. As a result, the company’s market capitalisation briefly exceeded $4 trillion during intraday trading (according to CNBC), making Nvidia the first publicly listed company to

Bitcoin Price Eyes New All-Time High
Cryptocurrencies

Bitcoin Price Eyes New All-Time High

Yesterday, the price of Bitcoin rose by over 2%, surpassing its June high.

Several cryptocurrency platforms were quick to report that the BTC/USD pair had reached a new all-time high. Even if so, this morning’s slight pullback indicates

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.