GBP/CHF traded higher on Monday, breaking above the 1.1850 resistance (now turned into support) level. Overall though, the pair continues to trade within a sideways range, between the 1.1770 and 1.1920 levels, that’s been in place since September 24th, and thus, we would consider the short-term picture to be neutral for now.
In order to start examining the bullish case, we would like to see a strong break above the upper end of the range, at 1.1920. Such a move would confirm a forthcoming higher high and may initially target the high of September 28th, at 1.1970. Another rise, above 1.1970, could pave the way towards the 1.2015 barrier, marked as a resistance by the inside swing lows of August 31st and September 7th, the break of which may see scope for extensions towards the peak of September 8th, at around 1.2075.
Shifting attention to our short-term oscillators, we see that the RSI lies above 50, but it has just ticked down, while the MACD is very close to both its zero and trigger lines. The RSI detect slightly positive momentum, but the MACD’s neutrality supports our view for standing pat at the moment, waiting for the exit out of the aforementioned range.
On the downside, we would like to see a decisive dip below 1.1770 before we assess whether the outlook has turned negative. This will confirm a forthcoming lower low and may initially aim for the low of September 24th, at 1.1725. If that level is not able to stop the slide, the bears may push the battle towards the 1.1655 zone, marked by the low of September 22nd. If they don’t abandon the field near that zone either, the next level to consider as a support may be the 1.1600 zone, defined by the low of September 11th.
The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. JFD Group, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD Group analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD Group prohibits the duplication or publication without explicit approval.
72,99% of the retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure: https://www.jfdbank.com/en/legal/risk-disclosure
Recommended Content
Editors’ Picks
AUD/USD pressures as Fed officials hold firm on rate policy
The Australian Dollar is on the defensive against the US Dollar, as Friday’s Asian session commences. On Thursday, the antipodean clocked losses of 0.21% against its counterpart, driven by Fed officials emphasizing they’re in no rush to ease policy. The AUD/USD trades around 0.6419.
EUR/USD extends its downside below 1.0650 on hawkish Fed remarks
The EUR/USD extends its downside around 1.0640 after retreating from weekly peaks of 1.0690 on Friday during the early Asian session. The hawkish comments from Federal Reserve officials provide some support to the US Dollar.
Gold price edges higher on risk-off mood hawkish Fed signals
Gold prices advanced late in the North American session on Thursday, underpinned by heightened geopolitical risks involving Iran and Israel. Federal Reserve officials delivered hawkish messages, triggering a jump in US Treasury yields, which boosted the Greenback.
Bitcoin Price Outlook: All eyes on BTC as CNN calls halving the ‘World Cup for Bitcoin’
Bitcoin price remains the focus of traders and investors ahead of the halving, which is an important event expected to kick off the next bull market. Amid conflicting forecasts from analysts, an international media site has lauded the halving and what it means for the industry.
Is the Biden administration trying to destroy the Dollar?
Confidence in Western financial markets has already been shaken enough by the 20% devaluation of the dollar over the last few years. But now the European Commission wants to hand Ukraine $300 billion seized from Russia.