USD/CHF recovers to 0.9670 ahead of Jackson Hole
|A fresh bout of USD buying interest seems to have emerged during the last hour of trading, with the USD/CHF pair erasing all of its early losses to currently trade nearly unchanged from yesterday's closing level at around 0.9670-75 band.
Heading into the big event risk, the Fed Chair Janet Yellen's speech at Jackson Hole symposium, traders continue to reposition as strong hawkish signals would shoot up expectations of September rate-hike and trigger a sharp bullish spike for the greenback.
Also in focus would be the preliminary release of US GDP print for Q2 2016, scheduled for release later during NA trading session.
How strong has the move been?
The hourly FXStreet OB/OS Index is showing neutral conditions, alongside the FXStreet Trend Index which is slightly bearish. At the time of writing, RSI is neutral at 61.67, up from 50.44 at the last hour close, while ADX is ranging at 24.47, down from 40.27 previous.
Meanwhile, daily RSI is in neutral territory at 46.49. On the hourly USD/CHF chart, the 200 SMA is climbing and currently at 0.9666, up from the previous hour close at 0.9629. On average, the exponential closing price for the past 20 days is 0.9694, with the trend indicating a continuation lower ahead.
How volatile has USD/CHF been?
2-Standard Deviation Volatility Bandwidth is presently at 33 pips and shrinking on the hourly USD/CHF chart, while the ATR (14) is currently at 12 pips. 2-Standard Deviation Volatility Bandwidth is at 301 pips and shrinking on a daily chart.
Over the last four weeks, the average movement for the present session has been 12 pips per hour. Further, today’s peak period for volatility is between 12:00-13:00 GMT, which sees an average movement of 47 pips over the previous four week period.
What price levels and patterns have to be considered?
Immediate resistance ahead is pegged at 0.9677 (Weekly High), 0.9678 (Daily Open), 0.9685 (Daily High), 0.9689 (Yesterday's High) and 0.9694 (Daily 20 SMA). Next support to the downside can be found at 0.9667 (Hourly 20 EMA), 0.9649 (Daily Classic S1), 0.9648 (Daily Low) and 0.9646 (Hourly 100 SMA).
Looking at price patterns, we can see a Piercing Line 1-hour candlestick formation, and a Hammer 4-hour formation.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.