USD/CHF Price Prediction: Gaps higher at open, uptrend remains intact

USD/CHF has opened a Runaway Gap higher at the open, suggesting the uptrend will continue.
Volume is low, reducing the chances that the gap represents a point of exhaustion.

Joaquin Monfort FXStreet

USD/CHF opened a gap higher at the open on Monday (see chart below) and then promptly fell back down. It has since closed the gap.

Despite the speed of the decline following the gap higher, the short and medium term trend is still probably bullish, which given the old saying that “the trend is your friend” is likely to continue.

USD/CHF 4-hour Chart

The gap is probably what would be classified as a “Runaway Gap”. These happen during strong rallies.

The lack of volume accompanying this gap (yellow rectangle on volume) indicates this is probably not an Exhaustion Gap which comes at the end of the trend. Price is, therefore, likely to continue rising.

A break above the 0.8700 level (October 28 high) would confirm a further extension to the 0.8750 resistance level (August 15 high).

The Relative Strength Index (RSI) momentum indicator is still not in overbought territory (above 70) suggesting the pair has room for more upside.

Author

Joaquin Monfort

FXStreet

Joaquin Monfort is a financial writer and analyst with over 10 years experience writing about financial markets and alt data. He holds a degree in Anthropology from London University and a Diploma in Technical analysis.

EUR/USD remains below 1.1850 after US data

EUR/USD struggles to gain traction and trades in a narrow range below 1.1850 on Wednesday. The US Dollar stays resilient against its rivals following the better-than-expected Durable Goods Orders and housing data, limiting the pair's upside ahead of FOMC Minutes.

GBP/USD stays in narrow channel above 1.3550 ahead of FOMC Minutes

GBP/USD holds its ground following Tuesday's slide and moves sideways above 1.3550 midweek. Although the data from the UK confirmed that inflation cooled in January, the positive shift seen in market mood helps the pair keep its footing as investors wait for the Fed to publish the minnutes of the January policy meeting.

Gold regains some shine, retargets $5,000 ahead of FOMC Minutes

Gold gathers fresh upside traction on Wednesday, leaving part of the weakness seen at the beginning of the week and refocusing its attention to the key $5,000 mark per troy ounce, all ahead of the release of the FOMC Minutes and despite the modest uptick in the US Dollar.

Pi Network rally defies market pressure ahead of its first anniversary

Pi Network is trading above $0.1900 at press time on Wednesday, extending the weekly gains by nearly 8% so far. The steady recovery is supported by a short-term pause in mainnet migration, which reduces pressure on the PI token supply for Centralized Exchanges. The technical outlook focuses on the $0.1919 resistance as bullish momentum increases.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Top 3 Price Prediction: Bitcoin, Ethereum, and Ripple face downside risk as bears regain control

Bitcoin, Ethereum, and Ripple remain under pressure on Wednesday, with the broader trend still sideways. BTC is edging below $68,000, nearing the lower consolidating boundary, while ETH and XRP also declined slightly, approaching their key supports.