- The Greenback bulls will get strengthened after an upside break of the accumulation phase.
- A Spring formation around 0.9400 to remain a major support area ahead.
- The 20-and 50-EMAs are on the verge of delivering a bull cross.
The USDCHF pair has extended its recovery after overstepping the immediate hurdle of 0.9458 in the Tokyo session. The asset has been underpinned as investors have preferred to turn risk-averse amid geopolitical tensions between North Korea and the US. North Korea warned on Thursday of "fiercer military responses" to U.S. efforts to boost its security presence in the region with its allies, says Reuters.
Meanwhile, the US dollar index (DXY) is aiming to test Wednesday’s high around 106.78. The 10-year US Treasury yields have shown a mild recovery to near 3.73%.
USDCHF has delivered a breakout of the inventory accumulation phase in which inventory shifts from retail participants to institutional investors. Earlier, the asset rebounded after forming a Spring around 0.9400 support. This marks a selling climax, followed by a responsive buying action.
The 20-and 50-period Exponential Moving Averages (EMAs) are on the verge of delivering a bearish crossover of around 0.9450. Meanwhile, the Relative Strength Index (RSI) (14) is attempting to shift into the bullish range of 60.00-80.00.
Going forward, a decisive move above Monday’s high at 0.9489 will drive the asset towards November 10 low at 0.9630, followed by November 9 low at 0.9800.
On the flip side, a drop below Spring formation around 0.9400 will drag the pair towards January 31 high at 0.9343. Slippage below the latter will drag the major towards March 31 low around 0.9200.
USDCHF hourly chart
-638042568289947991.png)
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD holds gains above 1.0700, as key US data loom
EUR/USD holds gains above 1.0700 in the European session on Thursday. Renewed US Dollar weakness offsets the risk-off market environment, supporting the pair ahead of the key US GDP and PCE inflation data.
GBP/USD extends recovery above 1.2500, awaits US GDP data
GBP/USD is catching a fresh bid wave, rising above 1.2500 in European trading on Thursday. The US Dollar resumes its corrective downside, as traders resort to repositioning ahead of the high-impact US advance GDP data for the first quarter.
Gold price edges higher amid weaker USD and softer risk tone, focus remains on US GDP
Gold price (XAU/USD) attracts some dip-buying in the vicinity of the $2,300 mark on Thursday and for now, seems to have snapped a three-day losing streak, though the upside potential seems limited.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
US Q1 GDP Preview: Economic growth set to remain firm in, albeit easing from Q4
The United States Gross Domestic Product (GDP) is seen expanding at an annualized rate of 2.5% in Q1. The current resilience of the US economy bolsters the case for a soft landing.