USDCHF softens, may possibly extend its bearishness.
“Dollar bulls wane as focus shifted towards other risky assets.”
US dollar slipped during Asian trading session as traders seek higher yields from other risky assets. Prior, Federal Reserve have made it clear to tighten monetary policy at a faster pace to control rising inflation. As the market has fully digested the fact, in addition to lack of important data from the US, the limelight has shifted to other currencies such as Aussie dollar and Swiss Franc.
Quick recap on USDCHF
The pair experienced substantial downfall as it failed to thrust past 1.0027.
USDCHF Weekly Technical Analysis
In weekly perspective, USDCHF is tilted towards the downside as MACD begin to form bearish momentum.
USDCHF Daily Technical Analysis
From daily perspective, the pair is currently testing at the double top neckline of 0.9550. A confirmatory close will open to next support at 0.9345, close proximity to the upward trendline.
Trading Idea
ORDER: SELL STOP
ENTRY: 0.9510
STOP LOSS: 0.9600
Target 1: 0.9410
Target 2: 0.9355
ZFX Analyst’s Comment
The pair may experience the same fate as USDCAD due to recent weakness in greenback. In the near-term, we will wait for a confirmatory close below 0.9550 before looking forward to next target at 0.9355.
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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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