Seems supported above 0.8900 due to resilient US Dollar – Crypto News – Crypto News
Connect with us
USD/CHF flirts with daily low, bears now await sustained weakness break below 0.9600 mark USD/CHF flirts with daily low, bears now await sustained weakness break below 0.9600 mark

others

Seems supported above 0.8900 due to resilient US Dollar – Crypto News

Published

2 years ago

on

Share:

  • USD/CHF rebounds from 0.8900, supported by the resilient US Dollar.
  • Fed policymakers showed no interest in increasing interest rates in September.
  • USD/CHF rally pauses after reaching near the previous resistance zone placed in a range of 0.8900-0.9020.

The USD/CHF pair rebounds after correcting to near the crucial support of 0.8900, supported by the resilient US Dollar amid the risk-off market mood. The Swiss Franc asset remains broadly strong as the appeal for the US Dollar is firm due to deepening global uncertainties.

S&P500 futures generated decent gains in the European session due to the risk-aversion theme. US equities also faced selling pressure on Thursday as sheer strength in the United States economy could allow the Federal Reserve (Fed) to discuss further policy tightening actively.

For September monetary policy, Fed policymakers: Dallas Fed Bank President Lorie Logan and New York Fed Bank President John Williams showed no interest in increasing interest rates further.

The Swiss Franc remained in action as the Swiss economy remained stagnant in the April-June quarter while investors anticipated a growth rate of 0.1%. In the January-March quarter, the Swiss economy grew by 0.3%.

USD/CHF rally pauses after reaching to near the previous resistance zone placed in a range of 0.8900-0.9020 on a four-hour scale. The asset is trading in a Rising Channel chart pattern in which each corrective move is considered as a buying opportunity by the market participants. The 50-period Exponential Moving Average (EMA) at around 0.8870 continues to provide support to the US Dollar bulls.

Meanwhile, the Relative Strength Index (RSI) (14) trades in the bullish range of 60.00-80.00, which indicates that the upside impulse is already active.

For a fresh upside, the asset needs to climb above the psychological resistance of 0.9000, which will drive the asset toward June 15 high at 0.9056, followed by June 12 high at 0.9109.

In an alternate scenario, a breakdown below April 30 low around 0.8750 would expose the asset to August 10 low at 0.8890 and July 24 low at 0.8637.

USD/CHF four-hour chart

 

Related Topics:
Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Trending