With not a lot of top-tier data on tap, I’ve got my sights set on USD/CHF’s short-term uptrend. Here’s the setup I’m looking at!
Fresh Market Headlines & Economic Data:
- Fed to relaunch crisis-era facility that allows large financial institutions access to short-term loans
- Mnuchin warns senators lack of action could result in 20% unemployment rate
- Australia declares emergency, warns coronavirus crisis could last six months
- Japan’s Abe to launch panel to mull big stimulus package
- New Zealand current account deficit narrows to $1.9 billion
- Leading index shows “Australia vulnerable”
- Japan’s exports fall, imports from China slump as virus impact widens
- Australia’s preliminary retail turnover rises 0.4% in February
Upcoming Potential Catalysts on the Economic Calendar:
- Euro Zone’s final CPI at 10:00 am GMT
- Italy’s trade balance at 10:00 am GMT
- Euro Zone’s trade balance at 10:00 am GMT
- Canada’s CPI reports at 12:30 pm GMT
What to Watch: USD/CHF
The Fed’s $500 repo operation as well as news of Trump pushing for a $1 trillion stimulus package kept the dollar at the top of the forex heap in the previous session.
This translated to a bit of risk appetite in the Asian session, which saw the dollar lose a couple of pips across the board. There are no top-tier reports scheduled in the next couple of hours so it’s possible that we’ll see the dollar return to its intraweek uptrends.
In USD/CHF’s case, price is almost at a 38.2% Fibonacci retracement near a mid-channel support on the 1-hour chart. Oh, and are you seeing that the 38.2% Fib also lines up with a previous resistance?
Note that USD/CHF has only dropped by half of its daily ATR. This means we could still see some selling before any bullish momentum.
A long trade around the Fib levels would make for a good trade if USD/CHF jumps back to its .9650 March highs.
If you’re not comfortable buying the dollar against the franc, however, or if you think that USD/CHF will drop lower before seeing support, then you can also ride the current downswing and bail as soon it finds support at areas of interest like .9530 or .9480.
Roz has been engaged in the financial markets since 2017, specializing in Foreign Exchange, Before joining to FOREX IN WORLD she start to learn forex trading related information.
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