Has the USD/CHF bull wave peaked? [Video]

Christina Parthenidou XM

USDCHF reversed on Tuesday after six weeks of gains, as the bulls became tired near the resistance trendline at 0.8840 from March.

The 20- and 50-day simple moving averages (SMAs) came immediately to defend the upleg that started from the eight-year low of 0.8515 in mid-July. Traders might also keep a close eye on the 23.6% Fibonacci mark of the March-July downfall, slightly lower at 0.8760. If that base cracks, they may press the price towards the 0.8700 constraining area. Then, another deep negative correction could follow to 0.8600 if sellers stay in the driver’s seat.

Technically, a rebound in the price cannot be excluded as the RSI has not crossed below its 50 neutral mark yet, while the MACD is still hovering around its red signal line.

Still, it’s uncertain whether the pair will find sufficient buying interest to advance sustainably above the descending trendline and the 0.8840 area. The 38.2% Fibonacci mark of 0.8890 could be another headache for the bulls. If the latter gives way, the price could rise exponentially towards the 0.8980 crucial barrier and the 50% Fibonacci, while an extension above 0.9000 could clear the way towards the 200-day SMA.

In brief, USDCHF is testing a potential support zone with scope to force its way back to the important 0.8840 resistance bar. Hopes for a bullish revival could stay intact unless the price dives below 0.8760.

Author

Christina Parthenidou

Christina joined the XM investment research department in May 2017. She holds a master degree in Economics and Business from the Erasmus University Rotterdam with a specialization in International economics.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.