Red hot inflation propels US dollar higher.
“Federal Reserve July policy meeting minutes restructure market’s view towards the greenback.”
US dollar climbed to three-weeks high as latest meeting minutes reaffirms the market with possibly the longest streak of high inflation. In the minutes, Federal Reserve highlighted last month’s inflation data shows “little evidence” of easing. While the minutes signaled eventual slowdown in rate hike pace, Fed is expected to keep it at high level until inflationary pressure is under control. This raises opportunity cost of holding other assets which pays lower rate of return as compared to US dollar.
Quick recap on USDCHF
Overall structure of USDCHF is tilted towards the upside due to recent rebound from the upward trendline.
USDCHF Weekly Technical Analysis
From weekly perspective, the pair is trying to rebound from the lower level, whereby a succession would warrant for further upside ahead.
USDCHF Daily Technical Analysis
From daily perspective, MACD begins to form bullish signal while the pair is testing near 0.9550.
ORDER: BUY STOP
STOP LOSS: 0.9490
Target 1: 0.9700
Target 2: 0.9765
ZFX Analyst’s Comment
The pair’s recent rebound from upward trendline suggests possible extension of bullish momentum. Thus, a break above nearest resistance level will provide further confirmation.
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.
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