USDCHF slumps downwards, but will it last?
“China recent lockdown and protest sparks risk-off sentiment, shining the limelight on safe-havens.”
Swiss franc aims to thread lower as the market was spooked by civil unrest in China due to harsh anti-Covid restrictions. Last weekend, scuffle occurred in several cities in China after rising coronavirus cases prompted local government to enact total lockdown. Recent happenings have dialled down market expectation towards China economy and at the same time, raising the demand for safe-haven assets.
Quick recap on USDCHF
The pair failed to make substantial recovery, threading lower for the past few periods as it fully materializes a double top formation.
USDCHF Weekly Technical Analysis
The pair is currently holding by a thin line at the neckline of 0.9410 after it failed to stage a rebound.
USDCHF Daily Technical Analysis
Daily chart shows similar perspective although 0.9410 may be the last line of defense for bulls before a sharp decline occurs.
Trading Idea
ORDER: SELL STOP
ENTRY: 0.9350
STOP LOSS: 0.9440
Target 1: 0.9260
Target 2: 0.9200
ZFX Analyst’s Comment
With the pair being exposed to the last line of defense, we expect bears to push downwards even further. A close below the nearest support may validate such hypothesis.
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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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