Inflation runs hot, USDCHF follows suit.
“US inflation continues to appreciate despite policy tightening efforts, signaling prolonged tightening from Federal Reserve.”
Market bulls steered the greenback higher, catalyzed by rising inflation in the United States. Both CPI and Core CPI for last month beats expectations, with market participants speculating a prolonged policy tightening from the Federal Reserve. Moreover, demoralizing sentiment towards other region’s asset helps to keep the greenback afloat at high levels.
Quick recap on USDCHF
The pair remains in a range bound as it subject to both strong resistance and support.
USDCHF Weekly Technical Analysis
From weekly perspective, USDCHF retest at strong hurdle of 1.0027. With MACD forming bullish signal, a break will signify bullish extension.
USDCHF Daily Technical Analysis
Similar case can be seen in daily perspective albeit a rather uneven bullish momentum from the MACD.
ORDER: BUY STOP
STOP LOSS: 0.9990
Target 1: 1.0150
Target 2: 1.0200
ZFX Analyst’s Comment
From 2 different perspective, we could observe similar signals which point towards further upside ahead. Thus, a closure above the strong resistance will provide us with confirmation on the hypothesis.
Risk Warning: The above content is for reference only, and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations carried out in accordance with this article. Please be firm in your thinking and do the corresponding risk control.
ZFX (Zeal Capital Market) is an FCA & FSA licensed online Forex & CFD broker providing more than 100 products for Forex, commodities, stock indices, and share CFDs. Open a trading account with min. USD 50 deposit and download our MT4 trading platform now!