A gradual improvement in the financial markets’ risk sentiment has helped the USDCHF to gain back some of the ground it lost in the last two weeks when safe haven demand was very heavy. The pair has gained 150 pips since last week’s low of 0.9659, buoyed by risk-on sentiment as well as improvement in US Treasury bond yields. Not even the call by US President Donald Trump for the Fed to cut interest rates by at least 100bps could cut demand for the greenback.
The USDCHF is presently trading around the 0.9800 mark in what has generally been a light London trading session. Things are expected to heat up later in the day when the minutes of the last FOMC meeting are made public. The release of the FOMC meeting minutes would determine if the pair can end the day on a bullish note or whether the pair would take a breather. Further impetus for this pair will be seen on Friday when Fed Chair Jerome Powell delivers a speech at the Jackson Hole Symposium for central bankers.
Technical Play for USDCHF
USDCHF continues to trade within the range that lies between 0.97750 acting as the floor and 0.98225 which serves as the ceiling. The release of the FOMC minutes as well as speeches from the Jackson Hole symposium are going to impact price direction and serve to take the pair out of this range.
A break of the 0.98225 resistance opens the door for the test of 0.9846 and 0.9885. A downside break of the 0.9775 support will allow price to beat a path to the 0.9748 and 0.9721 price levels in the near term.Don’t miss a beat! Follow us on Telegram and Twitter.
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