Solid News

USDCHF Quotes are Trying to Leave the Downward Channel

2/16/2023 2:28 PM

The USD/CHF pair is moving within the medium-term downward channel, having tested its upper limit of 0.9260 this week, above which it has not been able to break through yet. Currently, the US currency is receiving support from monetary factors, as investors are preparing to tighten the US Federal Reserve's monetary policy, and the price's attempts to leave the current channel soon are likely to continue.

Recall that the publication of strong January data on the labor market and keeping inflation above the forecast level confirmed the insufficiency of measures taken by officials to cool the economy. Experts believe that the regulator will not stop the reduction of incentives until at least summer; even then, it will decide whether to fix or increase them. Of the short-term factors supporting the dollar, we can note the release of positive data on January retail sales: the indicator rose by 3.0% after a correction of –1.1%: households remain active, which can provide serious support to the gross domestic product (GDP).

Unlike most other European countries and the United States, where inflationary pressures are slowly easing, they are picking up again in Switzerland: in January, the annualized consumer price index rose from 2.8% to 3.3%, and the producer price index from 3 .2% to 3.3%. The negative momentum could push the Swiss National Bank to a more "hawkish" course and raise the rate by a step above 50.0 bps, which could negatively impact the franc's position.

The trading instrument rose above 0.9216 (the middle line of Bollinger Bands, Murrey level [1/8]). However, to resume serious growth, the quotes will have to leave the downward channel and consolidate above 0.9277 (Murrey level [4/8]), and positive dynamics will be able to continue to 0.9400 (Murrey level [6/8]) and 0.9521 (Murrey level [8/8]). The key "bearish" level is 0.9155 (Murrey level [2/8]), the breakdown of which will give the prospect of further decline to 0.9094 (Murrey level [1/8]) and 0.9033 (Murrey level [0/8]).

Technical indicators signal the readiness of a trend change: Bollinger bands have moved to a horizontal movement, Stochastic is pointing upwards, and the MACD histogram is decreasing in the negative zone.

Resistance levels: 0.9277, 0.9400, 0.9521. | Support levels: 0.9155, 0.9094, 0.9033.

Find Us
Registered Address : Bonovo Road – Fomboni Island of Mohéli – Comoros Union
Sofia, PO Box 1407,14 Flip Kutev Str. Floor 2, Industrial area Hladilnika, Bulgaria
Call Us
+35 924 928 392

Risk Warnings
Solid ECN Securities LLC offers trading on Foreign Exchange (‘Forex’ or ‘FX’) and Contracts for Difference (‘CFDs’), which are complex financial products that are traded on margin. They carry a high level of risk since leverage can work both to your advantage and disadvantage. As a result, these products may not be suitable for all investors, as loss of all invested capital may occur. You should not risk more than you are prepared to lose. Before deciding to trade, you need to ensure that you understand the risks involved and consider your investment objectives and level of experience. Seek independent advice, if necessary.
Solid ECN Securities LLC does not issue advice, recommendations or opinions in relation to acquiring, holding or disposing of a CFD. Solid ECN Securities LLC is not a financial advisor and all services are provided on an execution-only basis. This communication is not an offer or solicitation to enter into a transaction and shall not be construed as such.
This website is not directed at any jurisdiction and is not intended for any use that would be contrary to local law or regulation.
By using you agree to use our cookies to enhance your experience.
Solid ECN Securities LLC is authorized and regulated by the Comoros Union with reference number HY00623411.
Disclaimer 1: The information provided on this site is not intended for residents of any country or jurisdiction where its distribution or use would violate local laws or regulations.
Disclaimer 2: Solid ECN Securities LLC and it affiliates does not provide services to residents of the USA, Japan, Canada, Australia, the Democratic Republic of Korea, European Union, United Kingdom, Iran, Syria, Sudan and Cuba.
Copyright All Right Reserved 2024