USD/CHF reverses SNB-led bullish spike, back to 0.9735

Haresh Menghani FXStreet

The USD/CHF pair ran through fresh offers at session high near 100-day SMA and quickly erased majority of its gains led by SNB's decision to leave its monetary policy unchanged.

Currently trading around 0.9724 region, the pair failed to attract fresh buying interest despite of a downward revision to SNB's inflation projection. The pair once again failed to extend its move beyond 100-day SMA, clearly indicating a strong supply area around 0.9770-90 region.

The pair, however, has managed to hold with marginal gains as focus now shifts to a slew of macro releases from the US, which is likely to provide guidance over the Fed's next possible policy action that might eventually help investors to determine the next leg of direction move for the pair.

Technical levels to watch

A follow through selling pressure below 0.9725 (session low), the pair is likely to break through 0.9700 handle and head toward testing 0.9670-65 horizontal support. Meanwhile on the upside, momentum above 100-day SMA resistance near 0.9765 region might now confront resistance at the very important 200-day SMA near 0.9800-10 region above which the pair seems all set to extend its upward trajectory initially towards 0.9835 horizontal resistance and eventually towards monthly high resistance near 0.9885 level.

Sell 100%

Buy 0%

Avg Sell Price 0.9768

Avg Buy Price 0.0000

Liquidity Distribution

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

EUR/USD stays well offered below 1.1800

The selling pressure on EUR/USD is picking up pace, with the pair slipping decisively below the key 1.1800 level and sliding to fresh two week lows as Wednesday’s session draws to a close. The move lower comes as the US Dollar finds renewed strength after the latest round of US data and the release of the FOMC Minutes. Next of note on the docket will be the US weekly Initial Jobless Claims.

GBP/USD reaches multi-day lows near 1.3500

GBP/USD reverses its initial upside momentum and is now adding to previous declines, approaching the 1.3500 region on Wednesday. Cable’s downtick comes on the back of decent gains in the Greenback and easing UK inflation figures, which seem to have reinforced the case for a BoE rate cut in March.

Gold battle to regain $5,000 continues

Gold is back on the front foot on Wednesday, shaking off part of the early week softness and challenging two-day highs near the $5,000 mark per troy ounce. The move comes ahead of the FOMC Minutes and is unfolding despite an intense rebound in the US Dollar.

Bitcoin has found or is near a bottom, extended consolidation to follow: K33

Bitcoin (BTC) is nearing or has already established a bottom, which could be followed by a sustained period of slow price movement, according to K33.

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.

Sui extends sideways action ahead of Grayscale’s GSUI ETF launch

Sui is extending its downtrend for the second consecutive day, trading at 0.95 at the time of writing on Wednesday. The Layer-1 token is down over 16% in February and approximately 34% from the start of the year, aligning with the overall bearish sentiment across the crypto market.