FXOpen
The US Dollar (USD) extended upside movement against the Swiss Franc (CHF) on Friday, increasing the price of USDCHF to more than 0.9990 following the release of some key economic data from Switzerland. The technical bias already remains bullish because of a Higher Low (HL) in the recent downside move.
Technical Analysis
As of this writing, the pair is being traded around 0.9998. A hurdle may be noted near 0.9990-1.0000, the confluence of psychological number as well as horizontal support area as demonstrated in the following daily chart. A sustained break and daily closing above the 1.0000 resistance area could incite renewed buying interested towards the 1.0074 resistance, the 23.6% fib level.
On the downside, the pair is likely to find a support around 0.9918, the 38.2% fib level ahead of 0.9791, the 50% fib level and then 0.9660, the 61.8% fib level. The technical bias will remain bullish as long as the 0.9785 support area is intact.
Swiss Inflation
The Consumer Price Index (CPI) –a key gauge for inflation- was released by the Swiss Federal Statistical Office today. According to the data, the CPI in Switzerland remained -0.4% in December as compared to -0.1% in the month before, missing the median projection of -0.3%. Generally speaking, higher CPI reading is considered positive for the economy and vice versa thus a worse than expected actual outcome spurred bullish momentum in the price of USDCHF.
Trade Idea
Considering the overall technical and fundamental outlook, buying the pair around current levels appears to be a good strategy is we get a valid bullish engulfing pattern on the daily chart.
Trade global forex with the Innovative Broker of 2022*. Choose from 50+ forex markets 24/5. Open your FXOpen account now or learn more about trading forex with FXOpen.
* FXOpen International, Innovative Broker of 2022, according to the IAFT
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.
Latest from Forex Analysis
Latest articles
Market Analysis: American Currency Rises Sharply after Fed Meeting
As expected, the decision on the interest rate had a powerful impact on the markets. Thus, the euro/US dollar pair lost more than 100 pp in just a couple of hours and updated its recent low at 1.0630,
Oil Analysis: Finally, A Bearish Reversal?
The policy of OPEC+ countries to voluntarily reduce oil production was one of the drivers thanks to which the price of WTI oil increased by approximately 40% from its low in June. In such cases, it is appropriate to use
Central Bank Week Shakes Up Gold Market
Yesterday, the main event of the week took place — the Federal Reserve meeting, which had a noticeable impact on the market of assets denominated in US dollars. But besides the Fed meeting, there are a number of other events this