The currency pair USD/CHF at the rate of 0.89991 is experiencing significant momentum and surges to a level not seen in over a week.

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for FREE REGISTER to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level1)]

• USD/CHF gains strong follow-through traction and jumps to over a one-week high.

The pair currently trades last at 0.89991.

The previous day high was 0.8973 while the previous day low was 0.8907. The daily 38.2% Fib levels comes at 0.8948, expected to provide support. Similarly, the daily 61.8% fib level is at 0.8932, expected to provide support.

The USD/CHF pair builds on the overnight bounce from the vicinity of the 0.8900 figure and gains strong positive traction for the second successive day on Friday. The momentum remains uninterrupted through the early European session and lifts spot prices to over a one-week high, beyond the 0.9000 psychological mark in the last hour, though lacks follow-through.

The Swiss National Bank’s (SNB) decision to lift interest rates for the fifth time in succession, by 25 bps on Thursday seems to have disappointed some investors expecting a bigger increase. It is worth recalling that SNB Chairman Thomas Jordan recently showed the readiness to raise rates more aggressively, encouraging markets to price in the possibility of a 50 bps lift-off. The relatively smaller rate hike continues to undermine the Swiss Franc (CHF), which, along with the prevalent US Dollar (USD) buying, acts as a tailwind for the USD/CHF pair.

In fact, the USD Index (DXY), which tracks the Greenback against a basket of currencies, builds on the recovery from its lowest level since May 11 touched the previous day and draws support from the Federal Reserve’s (Fed) hawkish outlook. In fact, the Fed last week signalled that borrowing costs may still need to rise as much as 50 bps by the end of this year. Moreover, Fed Chair Jerome Powell, during his two-day congressional testimony, reiterated that the central bank will likely raise rates again this year, albeit at a “careful pace”, to combat inflation.

Powell added that the Fed doesn’t see rate cuts happening any time soon and is going to wait until it is confident that inflation is moving down to the 2% target. The markets were quick to react and are now pricing in a nearly 75% chance that the Fed will hike rates further in July. A stronger buck, along with some technical buying above the 50-day Simple Moving Average (SMA), remains supportive of the USD/CHF pair’s intraday positive move. That said, the risk-off impulse could drive some haven flows towards the CHF and cap gains for the major.

A slew of rate hikes by major central banks this month raises concerns about economic headwinds stemming from rapidly rising borrowing costs. Adding to this, the disappointing release of the flash Eurozone PMIs takes its toll on the global risk sentiment, which is evident from a generally weaker tone around the equity markets. This, in turn, is forcing investors to take refuge in traditional safe-haven assets and might keep a lid on the USD/CHF pair. Traders now look to the flash US PMIs for some impetus later during the early North American session.

Technical Levels: Supports and Resistances

USDCHF currently trading at 0.9 at the time of writing. Pair opened at 0.8947 and is trading with a change of 0.59 % .

The pair is trading below its 20 Daily moving average @ 0.9025, above its 50 Daily moving average @ 0.8979 , below its 100 Daily moving average @ 0.9101 and below its 200 Daily moving average @ 0.9327

The previous day high was 0.8973 while the previous day low was 0.8907. The daily 38.2% Fib levels comes at 0.8948, expected to provide support. Similarly, the daily 61.8% fib level is at 0.8932, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.8912, 0.8877, 0.8846
• Pivot resistance is noted at 0.8977, 0.9008, 0.9043

[/s2If]
Nehcap Expert Advisor
The NEHCAP MT4 EA is high quality professional trading system geared to generate returns without using GRID or martingales. Each trade has strict risk per trade parameter. The pairs under management include EURUSD, GBPUSD, AUDCAD, AUDNZD,GBPAUD, EURAUD, EURCAD, CHFJPY and many more.
The system is trading live: LIVE ACCOUNT TRACKING
You can run it free. Apply for a free trial and track our account. Buy the system or use profit share mechanism to generate returns on your MT4.
Join Our Telegram Group