USD/CHF rebounds but will it last?
“Xi’an, the city of 13 million residence enters into lockdown.”
Market demand for greenback was invigorated as recession fears send investors scavenging for safe-haven assets. According to reports, Xi’an entered a seven-day period of lockdown after 18 coronavirus cases were reported in the city. Public entertainment venue such as pubs, internet cafes and karaoke will shutdown on Wednesday’s midnight. The abrupt announcement sparked speculation for similar measure to be announced in Shanghai as coronavirus cases were detected in the past two days. Investors fear that China may enter a period of recession as more and more cases show up each day.
Quick recap on USDCHF
USDCHF fails to escape from previous neckline, subjecting the pair to oscillate within a price range.
USDCHF Weekly Technical Analysis
In weekly perspective, the pair remains biased towards the upside as it rebounds from the lower level. MACD shows diminished bearish momentum which provide further confirmation to such hypothesis.
USDCHF Daily Technical Analysis
In daily perspective, the pair is currently testing near 0.9719 following prior rebound from strong support of 0.9550. We will require a close above the level to gain further confirmation.
ORDER: BUY STOP
STOP LOSS: 0.9600
Target 1: 0.9910
Target 2: 1.0030
ZFX Analyst’s Comment
Buy pressure from the downside is relatively strong due to recent rebound from 0.9550. The pair is expected to extend its upside following a successful closure above 0.9719.
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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