Solid News

The USDCHF is Developing "Bearish" Momentum

1/16/2023 10:59 AM

The US dollar shows a moderate decline against the Swiss franc, developing the "bearish" momentum formed at the end of last week, when the instrument was quoted near the local highs of January 6. The USD/CHF pair is testing 0.9240 for a breakdown, waiting for new drivers to appear on the market and feeling pressure ahead of the US Federal Reserve meeting at the end of the month.

The American regulator is expected to raise the rate by 25 basis points, after which it is possible that the Chair of the Fed, Jerome Powell, will try to take a break to assess the effectiveness of the measures already taken. In addition, the key interest rate is close to the conditional target level of 5.0%, which, however, was not officially indicated in any way. Last week, traders received another confirmation of this scenario, after the release of December inflation data in the US: as expected, annual consumer price growth slowed down from 7.1% to 6.5%.

This week, the focus of investors will be a block of macroeconomic publications from the UK, the eurozone and China. On Tuesday, China will release data on the dynamics of Gross Domestic Product (GDP) for the fourth quarter of 2022. On the same day, the UK will publish the December report on the labor market, and Germany will release statistics on consumer inflation and January data on business activity from the Center for European Economic Research (ZEW).

Bollinger Bands in D1 chart demonstrate an unsteady decrease. The price range is slightly changing, being spacious enough for the current activity level in the market. MACD is reversing downwards forming a new weak sell signal (located below the signal line). Stochastic is showing similar dynamics while reversing downwards in the middle of its area.

Resistance levels: 0.9250, 0.9300, 0.9350, 0.9400. | Support levels: 0.9200, 0.9150, 0.9100, 0.9050.

Find Us
First Floor, First St Vincent Bank LTD Building James Street Kingstown St Vincent and the Grenadines
Call Us
+1 415 367 3742

Solid ECN Securities is an international brand formed and authorized in Saint Vincent and the Grenadines with the registration number 1390 LLC 2021 committed to offering the best possible trading experience. Disclosure: Please note that foreign exchange and other leveraged trading involve a significant risk of loss. It is not fit for all investors and you should make sure you realize the risks involved, seeking independent advice if necessary.
Solid ECN Securities and it affiliates don't accept applications from Indonesia, Egypt, Australia, Bonaire, CuraƧao, East Timor, Liberia, Saipan, Russia, Sint Eustatius, Tahiti, Turkey, Guinea-Bissau, South Sudan and other restricted countries.
Copyright All Right Reserved 2023