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.
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.
Latest articles
Gold Price Plunges After Climbing to $3,500 for the First Time
As the XAU/USD chart shows:
→ Yesterday, the spot gold price stopped just a few cents short of the key psychological level of $3,500 (and even exceeded it on the futures market);
→ But this morning, an ounce is trading
Alphabet (GOOGL) Shares Hover Near Psychological Level Ahead of Earnings Report
On 31 March, we noted that bearish sentiment could push Alphabet’s (GOOGL) share price towards the psychological level of $150. As the current price chart suggests, GOOGL is now trading close to that very level.
Moreover, the price is
Four 1-Minute Strategies for Scalpers
Scalping is all about speed, precision, and quick decision-making. For traders who thrive in fast-paced environments, 1-minute strategies offer a way to engage with the market. But with such a short timeframe, trading requires a clear plan and sharp execution.