Market Outlook
US dollar tumbles as investors shift focus. - Zeal Capital Market

US dollar tumbles as investors shift focus.

20-05-2022 09:53

“Heat upon greenback cools, all eyes on future data.”

US dollar loses its steam, trimming off further gains and recording its worst week since early February. Investors shifted their focus towards other risky assets as they may have fully digested the possibility for more aggressive rate hike from the Federal Reserve. Likewise, as Fed’s decision is solely dependent on future US data, investors shifted their focus for the time being before placing the limelight back upon greenback.

Quick recap on USDCHF

USDCHF headed for a sharp turn after touching resistance level near 1.0027.

USDCHF Weekly Technical Analysis

US dollar tumbles as investors shift focus. - Zeal Capital Market

We may be looking at a bearish close for the week as bears pickups up substantially, currently held of near 0.9725.

USDCHF Daily Technical Analysis

US dollar tumbles as investors shift focus. - Zeal Capital Market

From daily chart, the pair may have potential for further downside opportunity as MACD began to illustrate substantial build up in bearish momentum.

Trading Idea

US dollar tumbles as investors shift focus. - Zeal Capital Market

ORDER: SELL STOP

ENTRY: 0.9670

STOP LOSS: 0.9800

Target 1: 0.9530

Target 2: 0.9430

ZFX Analyst’s Comment

The pair is currently supported by 200-MA line, while overall trend began to skew towards the downside. Thus, keep on a look out for any close below 0.9719 in the daily chart for confirmation on the current hypothesis.

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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