Bottom line: USDCHF medium term structure remains bullish against 0.9150 lows. The proposed corrective drop from 0.9800 is approaching support around 0.9450. Traders might prepare to turn bullish again close to 0.9450/9500.
Fundamental Outlook:
USDCHF may reel under pressure and drop towards 0.9450 as NFP are expected to print another 8-10 Million. The unemployment rate set to rise to almost 20% will further add to US Dollar woes. Since the past few sessions the US Dollar has been hammered across the board, especially against the EURO, which is now trading close to 1.1350 mark.
Risk sentiment continued to soar high as SPX500 and Dow Jones are barely 10% away from their all-time highs. Investors continue to defy tensions between US and China, which deteriorated further as US blocked Chinese Airlines from American skies. It would be interesting to see if markets can continue rallying despite the factual economic damage caused due to COVID-19 pandemic.
GBPJPY has also managed to rally over 600 pips this week, trading above 138.00 as we write this article. The ongoing UK-EU Brexit talks and Japanese Yen decline as risk sentiment soars, might have played on the GBPJPY exchange rate.
Technical Analysis:
USDCHF bears remain in control as expected since recent swing highs around 0.9800 levels. We are expecting prices to drop towards 0.9450/60 zone, which is also the fibonacci 0.618 retracement of the previous rally between 0.9150 and 0.9900 respectively. The corrective drop might complete around 0.9450 and bulls back in control thereafter.
USDCHF had rallied sharply from 0.9150 through 0.9900 earlier. The bullish boundary is currently being retraced lower. It is quite possible that bears are successful to drag further towards 0.9335 levels before finding support. Any consistent drop beyond 0.9300 would be a threat to the above bullish structure.
Traders might be willing to take profits on short positions initiated around 0.9800/0.9850 if prices reach 0.9450/60. It is safe to be watchful before initiating longs positions around the 0.9450 fibonacci support.
Prepared by
Harsh Japee, Technical Analyst.
USDCHF Chart
MyFxtops 邁投 (www.myfxtops.com) -Reliable Forex Copy Trade community, follow the master for free to trade!
Disclaimer: This article is reproduced from the Internet. If there is any infringement, please contact us to delete it immediately. In addition: This article only represents the personal opinion of the author and has nothing to do with Mato Finance The originality and the text and content stated in this article have not been confirmed by this site. The authenticity, completeness and timeliness of this article and all or part of the content and text are not guaranteed or promised. Please refer to it for reference only Verify the content yourself.
Copyright belongs to the author.
For commercial reprints, please contact the author for authorization. For non-commercial reprints, please indicate the source.
MyFxtops迈投(www.myfxtops.com)-靠谱的外汇跟单社区，免费跟随高手做交易！
免责声明：本文系转载自网络，如有侵犯，请联系我们立即删除，另：本文仅代表作者个人观点，与迈投财经无关。其原创性以及文中陈述文字和内容未经本站证实，对本文以及其中全部或者部分内容、文字的真实性、完整性、及时性本站不作任何保证或承诺，请读者仅作参考，并请自行核实相关内容。
著作权归作者所有。
商业转载请联系作者获得授权，非商业转载请注明出处。
