On Tuesday, the pair USDCHF at 0.89501 encountered new supply and faced some selling pressure due to a slight decline in the value of USD.
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- USD/CHF meets with a fresh supply on Tuesday and is pressured by a modest USD downtick.
The pair currently trades last at 0.89501.
The previous day high was 0.8979 while the previous day low was 0.8912. The daily 38.2% Fib levels comes at 0.8937, expected to provide support. Similarly, the daily 61.8% fib level is at 0.8953, expected to provide resistance.
The USD/CHF pair struggles to capitalize on the previous day’s goodish rebound from the vicinity of the 0.8900 mark and meets with a fresh supply during the Asian session on Tuesday. Spot prices currently trade around the 0.8950 area and remain below the 50-day Simple Moving Average (SMA) immediate strong hurdle.
The Wagner group’s attempted mutiny in Russia over the weekend raises concerns about political instability in the country, which, along with worries about a global economic downturn, continue to underpin the safe-haven Swiss Franc (CHF). The US Dollar (USD), on the other hand, remains on the defensive for the second successive day and turns out to be another factor exerting some pressure on the USD/CHF pair.
That said, the Federal Reserve’s (Fed) hawkish outlook is holding back traders from placing aggressive bearish bets around the USD. In fact, the Fed had signalled that borrowing costs may still need to rise as much as 50 bps by the end of this year. Adding to this, Fed Chair Jerome Powell said that the US central bank doesn’t see rate cuts happening any time soon and will wait until it is confident that inflation is moving down to the 2% target.
Hence, the market focus remains glued to Powell’s remarks at a panel discussion in Sintra on Wednesday, which will be followed by the release of the US Core PCE Price Index – the Fed’s preferred inflation gauge on Friday. This, in turn, should play a key role in influencing expectations about the next policy move by the US central bank, which, in turn, will drive the USD demand and provide a fresh directional impetus to the USD/CHF pair.
In the meantime, traders will take cues from Tuesday’s US economic docket – featuring Durable Goods Orders, the Conference Board’s Consumer Confidence Index, New Home Sales and Richmond Manufacturing Index. Apart from this, the broader risk sentiment might produce short-term trading opportunities around the USD/CHF pair. Meanwhile, the recent repeated failures to find acceptance above the 50-day SMA favour bearish traders.
Technical Levels: Supports and Resistances
USDCHF currently trading at 0.8946 at the time of writing. Pair opened at 0.8957 and is trading with a change of -0.12 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 0.8946 |
| 1 | Today Daily Change | -0.0011 |
| 2 | Today Daily Change % | -0.1200 |
| 3 | Today daily open | 0.8957 |
The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.9017, 50 SMA 0.8979, 100 SMA @ 0.9095 and 200 SMA @ 0.932.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 0.9017 |
| 1 | Daily SMA50 | 0.8979 |
| 2 | Daily SMA100 | 0.9095 |
| 3 | Daily SMA200 | 0.9320 |
The previous day high was 0.8979 while the previous day low was 0.8912. The daily 38.2% Fib levels comes at 0.8937, expected to provide support. Similarly, the daily 61.8% fib level is at 0.8953, expected to provide resistance.
Note the levels of interest below:
- Pivot support is noted at 0.892, 0.8882, 0.8852
- Pivot resistance is noted at 0.8987, 0.9017, 0.9054
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 0.8979 |
| Previous Daily Low | 0.8912 |
| Previous Weekly High | 0.9013 |
| Previous Weekly Low | 0.8907 |
| Previous Monthly High | 0.9148 |
| Previous Monthly Low | 0.8820 |
| Daily Fibonacci 38.2% | 0.8937 |
| Daily Fibonacci 61.8% | 0.8953 |
| Daily Pivot Point S1 | 0.8920 |
| Daily Pivot Point S2 | 0.8882 |
| Daily Pivot Point S3 | 0.8852 |
| Daily Pivot Point R1 | 0.8987 |
| Daily Pivot Point R2 | 0.9017 |
| Daily Pivot Point R3 | 0.9054 |
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