USDCHF 1D
Updated
Summary:
- Fed officials are succeeding in calming the situation
- The pair broke below important support
- Swiss franc hits 3M highs
Recommendation:Trade: Short USDCHF behind the market - Take profit 1: 0.8908
- Take profit 2: 0.8777
- Stop loss: 0.9107
Justification:USDCHF fell below the 0.90 level, where it has not been since the end of February. It looks like the Fed officials have managed to calm the market down again regarding the fears of inflation growth and monetary policy tightening. This has led to a sell-off in the USD. The latest data from Switzerland showed that domestic factory activity rose to a new record in April and CPI hit a 15 month high. From a technical perspective, USDCHF broke below major support at 0.90. There is a 23.6 Fibo retracement of the decline starting in March 2020. The overall outlook remains bearish if price holds below this support. We place the stop loss at 0.9107.
Source: xStation5
Trade closed: stop reached
Stop loss: 0.9107
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