Bottom line: USDCHF long term structure remains bullish against 0.9150 mark. It has managed to carve a higher low at 0.9375 on June 11, 2020. Bulls are looking poised to resume rally above the 0.9900 mark, going forward.
Fundamental Outlook:
USDCHF has not moved much since the NFP yesterday and is almost flat around 0.9458. The exchange rate is set to gain as the US Dollar is showing signs of a reversal. Yesterday was no different as Global Indices and risk appetite gained close to +1.0%, but DXY was quick to be back above 97.00 mark.
SPX500, Dow Jones, NASDAQ and other indices have been rallying despite a steady rise in COVID-19 infections; the US alone has seen over 50K cases on Wednesday. US-China and China-India rift has been rising as well, with more sanctions being imposed.
A similar situation prevailed in January-February 2020, when COVID-19 was spreading fast in the US and other countries. Investors were all out, calling 30K-40K in the Dow Jones; we know what followed in February-March. This time it is the NASDAQ registering new highs, history might be set to repeat!
GBPJPY has again reversed from 134.70 highs yesterday. The exchange rate is trading below 134.00 mark and is set to come under further pressure and the Japanese Yen rises. The fragile risk sentiment might reverse lower, giving a distinct edge to the Japanese Yen.
Technical Analysis:
USDCHF bulls are inclined to resume rally towards 0.9900 levels and beyond, over the next few weeks to come. The currency had bounced off 0.9375 lows on June 11, 2020, which still remains intact. A break above 0.9540 would confirm that USDCHF is on its way higher.
USDCHF had earlier managed to rally between 0.9185 through 0.9900 in an impulse wave. Ideally, an impulse id followed by a corrective wave in the opposite direction. The drop from 0.9900 towards 0.9375 was corrective and it bounced a few pips below the fibonacci 0.618 retracement of the above rally.
Most probably, the next big move should be higher towards 0.9900 and prices should stay above 0.9375 ideally. Most traders might have initiated fresh long positions around 0.9400/0.9500 mark, with protective stop below 0.9375, and projected targets towards 0.9900 respectively.
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。
