Last Friday Swiss GDP unexpectedly rose 0.20 % while yesterday Swiss KOF eco barometer also jumped to 100.70, 0.30 points after a revision (100.40). Equities are main driving forces of the market at this point. USDCHF is safe heaven vs safe heaven so it is also exposed to European stocks and Chinese stocks vs US index futures. Adding to that correlation to EURUSD is strongly negative (opposite moving pairs).
Technically I can spot V shaped reversal which has lead to forming of inner trend line. Inner trend line is making the X CROSS with top descending trend line around 0.9710-0.9730 zone. X cross signifies strong resistance and this time it adds to confluence with H3 and 88.6 deep fib. Don’t forget that 88.6 is VERY strong turning point so I will be watching the zone for potential rejections towards 0.9520-00 (L3, DPP/weekly cam) and 0.9390 (L4/weekly cam). For this scenario 0.9810 should hold the price and previous triple top should not be broken.
The analysis and the article presents Nenad's opinion. Remember, financial trading is highly speculative & may lead to the loss of your funds. Proper risk management is the Holy Grail of trading.
Recommended Content
Editors’ Picks
EUR/USD keeps range above 1.0800 after German Retail Sales data
EUR/USD struggles to gain traction and continues to move in a tight channel slightly above 1.0800. The data from Germany showed that Retail Sales declined by 1.9% on a monthly basis in February, making it difficult for the Euro to attract buyers.
GBP/USD stays depressed below 1.2650 amid market caution
GBP/USD remains defensive below 1.2650 in European trading on Thursday. The hawkish tone from Fed Governor Christopher Waller keeps the US Dollar afloat amid a cautious trading environment ahead of key US data releases and the Good Friday trading lull.
Gold price bulls keenly await US PCE Price Index on Friday before placing fresh bets
Gold price (XAU/USD) continues with its struggle to make it through the $2,200 mark on Thursday and oscillates in a narrow trading band through the early part of the European session.
XRP ruling by Judge Torres denied in Coinbase lawsuit, yet another blow to Ripple
XRP programmatic sales ruling by Judge Torres completely rejected by US Court in Coinbase lawsuit. US Court rejected Coinbase’ motion to dismiss SEC lawsuit, weighing heavily on Ripple’s legal battle.
The other terminal rate: How far will policy rates be cut?
Recent communication by the Federal Reserve and the ECB has made it clear that the first cut in official interest rates is coming. Both central banks are saying the same but the ECB communication is more opaque than that of the Fed.