USD/CHF extended upside movement on Tuesday after bottoming near 0.8743 last week. The pair is expected to print a Higher High (HH) above the 0.8952 resistance area. The speech by Fed chair which is due today will provide more clear direction to the pair.
As of this writing, USD/CHF is being traded near 0.8804. A support can be noted near 0.8726, the 161.8% fib level, ahead of 0.8698 that is the low of the previous wave. A break and daily closing below the 0.8700 handle will turn the sentiment to bearish, exposing further dips below the 0.8650 level.
On the upside, the pair is expected to face a hurdle near 0.8813, the low of the previous wave, before 0.8846 which is the confluence of 76.4% fib level, and 55 & 100 MA on the four-hour chart.
Swiss Producer Prices
Producer and import prices in Switzerland declined less than expectations by 0.7% in March as compared to 0.8% decline in the same month of the year before, according to the government report. The data came better than the median projection of analysts, calling for a decline by 0.8%.
The Fed chairperson Yellen is scheduled to speak today. Her remarks might incite high volatility in the financial markets. She might give some clues on the future stimulus outlook of the US amid FOMC meeting which is going to be held at the end of this month. The dollar might strengthen on hawkish remarks by the Fed chair and vice versa.
The sentiment is very bullish for USD/CHF, buying the pair on dips might be a good strategy, placing the stop loss just below the 0.8700 handle, target should be at least 0.8850. Not to mention, US inflation report is also due today in the US session which could also incite high volatility in the pair.
We are sorry that this post was not useful for you!
Let us improve this post!
Tell us how we can improve this post?