USDCHF relinquished as CPI came in softer than expected.
“Soft CPI data from US may derail bulls as Fed might look into softer approach.”
Greenback falls through with USDCHF tanking at eight months low after US releases softer than expected CPI data. According to US Department of Labor, Core Consumer Price Index for November came in at 0.2%, lower than expected reading of 0.3%. The data signifies the effect from aggressive Fed in raising interest rates, while suggesting possibility of the central bank in scaling down their efforts for upcoming months.
Quick recap on USDCHF
USDCHF deepened its losses after prior recovery falters.
USDCHF Weekly Technical Analysis
From weekly perspective, the pair is skewed towards the downside as it falters through previous neckline of double top formation.
USDCHF Daily Technical Analysis
From daily perspective, MACD shows diminishing bullish momentum with a shift towards the bearish territory.
ORDER: SELL STOP
STOP LOSS: 0.9270
Target 1: 0.9160
Target 2: 0.9100
ZFX Analyst’s Comment
With recent price action and momentum that skewed towards the downside, we expect the pair to extend its losses further after a closure below 0.9268.
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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