- USD/CHF is trading 0.38% lower on Monday and the pair moved below 0.95 again.
- There is a bullish signal on the MACD that could indicate more upside is to come.
USD/CHF 4-hour chart
There have been some very interesting moves in the safe-haven currencies of late. Both the Swiss franc and Japanese yen moved sharply lower a few days before the stock market sell-off toward the end of last week. This move proceeded the bearishness in stock markets and now at the start of the week, the indices have moved higher and so has USD/CHF. Gold moves have been capped by the strength in the US dollar so this could mean the real move is into cash, specifically the greenback.
If this is the case, then this retracement back down on Monday could just be a small pullback before the reversal to the upside really gathers some momentum. Looking at the MACD this confirms the theory as the histogram has turned green. The main signal for trend, however, is the lagging signal lines. If the signal lines push up through the mid-level then it could be a good sign for the dollar bulls.
The reason why this USD/CHF move is interesting is the fact that traders and investors would normally move into safe-haven currencies like the yen and Swiss franc when equities move lower. It seems in times of distress (as mentioned above) the dollar is the safe haven of choice or the market needs it to meet redemptions and for margin.
This is a chance for wave analysts to catch the higher low wave if it is the case. On the upside, the key resistance zones to watch are 0.9550 and the stubborn 55 Exponential Moving Average. If these levels break then it is game on for the bulls.
Additional levels
All information and content on this website, from this website or from FX daily ltd. should be viewed as educational only. Although the author, FX daily ltd. and its contributors believe the information and contents to be accurate, we neither guarantee their accuracy nor assume any liability for errors. The concepts and methods introduced should be used to stimulate intelligent trading decisions. Any mention of profits should be considered hypothetical and may not reflect slippage, liquidity and fees in live trading. Unless otherwise stated, all illustrations are made with the benefit of hindsight. There is risk of loss as well as profit in trading. It should not be presumed that the methods presented on this website or from material obtained from this website in any manner will be profitable or that they will not result in losses. Past performance is not a guarantee of future results. It is the responsibility of each trader to determine their own financial suitability. FX daily ltd. cannot be held responsible for any direct or indirect loss incurred by applying any of the information obtained here. Futures, forex, equities and options trading contains substantial risk, is not for every trader, and only risk capital should be used. Any form of trading, including forex, options, hedging and spreads, contains risk. Past performance is not indicative of future FX daily ltd. are not Registered Financial Investment Advisors, securities brokers-dealers or brokers of the U.S. Securities and Exchange Commission or with any state securities regulatory authority OR UK FCA. We recommend consulting with a registered investment advisor, broker-dealer, and/or financial advisor. If you choose to invest, with or without seeking advice, then any consequences resulting from your investments are your sole responsibility FX daily ltd. does not assume responsibility for any profits or losses in any stocks, options, futures or trading strategy mentioned on the website, newsletter, online trading room or trading classes. All information should be taken as educational purposes only.
Recommended content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.