USDCHF: Experts predict a difficult year for the Swiss Franc“The franc is once more overvalued,” stated David Alexander Meier, economist at Julius Baer Group and pinnacle fourth-region FX forecaster in keeping with Bloomberg.
Mr. David expects the franc to fall approximately 4% from modern tiers with the aid of using the quit of the yr while the Swiss National Bank (SNB) stops assisting the foreign money. This is extra than double the common estimate of economists.
His view is primarily based totally at the SNB`s current U-turn, which signaled that it might possibly ease - if now no longer absolutely reverse - the overseas foreign money income that helped the CHF top in 2015 towards the EUR and EUR. USD. Last week, SNB President Thomas Jordan stated the terrible effect of the highly-priced franc on exporters.
The economist expects the SNB, which has the second one-lowest hobby charge amongst G-10 countries, to begin decreasing hobby prices while inflation in Switzerland stabilizes beneath the 2% goal with the aid of using the quit of this yr. He stated the SNB is not likely to preserve shopping for overseas foreign money reserves, an pastime that has stopped considering that the second one region of 2022. That will placed stress at the franc, even extra than the decline in overseas foreign money income.
The franc rose almost 10% towards the U.S. greenback closing yr, the largest benefit the various G-10 and its best-appearing foreign money considering that 2010. However, till January this yr, CHF has slipped in conjunction with G-10 currencies and misplaced approximately 2.5% of its cost amid a more potent dollar way to developing expectancies of the United States Federal Reserve (Fed) easing economic policy. .
Usdchfidea
USDCHF - Short pattern confirmed ✅Hello traders!
‼️ This is my perspective on USDCHF.
Technical analysis: Here we have the confirmation of SH + BOS + FVG pattern. Price firstly raided buy side liquidity with a stop hunt then broke the structure and reacted from imbalance (FVG). I expect bearish price action to the support zone.
Fundamental news: Next week is full of news in USA. Firstly on Wednesday we have Interest Rate followed by FOMC Conference, then on Friday NFP and Unemployment Rate. Pay attention to the results in order to validate the analysis.
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USDCHF Weekly planPlan for USDCHF for the coming week: I am waiting for the price to trigger my short zone, around 0.874/0.878. Here i will check for divergences on smaller timeframe, to increase my shorts. I placed a sell limit at 0.87650 considering that 0.877 is a strong resistance, and i expect a pullback anyways from there
USDCHF LONG
📈 Market Analysis - Buy Opportunity 📉
USDCHF has recently broken the top (lower high) area of the downtrend line in the 4-hour timeframe chart.
📊 Expectations:
Anticipate the pair to re-test key support levels as highlighted in the attached chart.
📊 Trading Strategy:
This trade is rooted in a blend of technical analysis and candlestick patterns. It's a long-term position, so ensure sufficient margin to manage market fluctuations. Implement proper risk management in line with your account size.
🚦 Trading Rules:
1️⃣ Rule 1: When the market hits Target 1, consider closing some positions or move your STOP LOSS to ENTRY price for safe trading.
2️⃣ Rule 2: After reaching Target 1, avoid placing new trades based on the same signal/alert.
3️⃣ Rule 3: If the market consolidates for more than 2 days, close the trade and patiently wait for the next favorable trading opportunity.
USDCHF: USD is calm and trading volume is lowThe dollar traded subdued in early European trading on Monday, with the US holiday keeping trading volume down as traders considered the possibility of an early interest rate cut by the Federal Reserve.
At 04:35 ET (09:35 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.1% higher at 102.242, at the start of the holiday. Martin Luther King Jr.
The U.S. producer price index unexpectedly fell in December, according to data released Friday, prompting traders to increase bets that the Federal Reserve will start cutting interest rates as early as this year.
According to the CME FedWatch tool, the market now indicates a 78% chance that the US central bank will begin easing interest rates in March, compared with a 68% chance a week ago.
The US data calendar is quiet this week, with the main focus on retail sales data due out on Wednesday. This will be closely watched for signs that consumer spending - the main driver of economic growth - remains resilient in the face of rising interest rates.
Retail sales are expected to increase 0.4% in December, after rising 0.3% in November.
Investors will also have the opportunity to hear from several Fed officials, including Fed Governor Christoper Waller as well as Atlanta Fed President Raphael Bostic and San Francisco Fed head Mary Daly.
7 Dimension Analysis For USDCHF 😇 7 Dimension Analysis
Time Frame: H4, D1
1️⃣ Swing Structure: Bearish on both time frames
🟢 Structure Behavior: Break of Structure (BoS)
🟢 Swing Move: Corrective, indicating a nearly completed sideways move
🟢 Inducement: Liquidity sweep with a long wick candle
🟢 Decisional OB: Mitigated, resistance at CIP with a strong buildup post-breakout, indicating bearish strength in the area
🟢 Traps: Shakeout completed in this area (Arrows)
🟢 Time Frame Confluence: Daily and H4
2️⃣ Pattern
🟢 CHART PATTERNS: Reversal with a triple top observed during this phase, forming a Consolidation Rectangle
🟢 CANDLE PATTERNS: Notable long wick, Open low/high pattern awaiting confirmation, and an already formed Tower Top
3️⃣ Volume
🟢 Fixed Range: Sell volume predominant in this area
🟢 Low Volume on Breakout: High volume in the purple rectangle area, but without updating Upside move. Expecting a sharp downward move.
4️⃣ Momentum RSI
🟢 Zone: Price in a wide bearish range
🟢 Range Shift: Bearish to sideways shift observed
🟢 Grandfather Father Son: A 6-star selling setup according to this RSI strategy, with an 80% probability
5️⃣ Volatility Bollinger Bands
🟢 Middle Band: No confirmation yet
🟢 Contraction: After an expansion move, the market is now in full contraction mode, making outside-of-the-band closing crucial
🟢 Squeeze Breakout: Anticipated
🟢 Walking on the Band: Awaiting
🟢 Headfake: Two observed
🟢 Band Puncher: Three times observed
(For those seeking to learn these concepts in a professional manner, feel free to send me a direct message.)
6️⃣ Strength According to ROC
🟢 Values: CHF 7.19 vs. USD -3.46
7️⃣ Sentiment
☑️ FIB Trigger Event: Done
☑️ Trend Line Breakout: Awaiting
💡 Decision: Sell
🚀 Entry: 0.8474
✋ Stop Loss: 0.8590
🎯 Take Profit: 0.8133
2nd Exit if Internal Structure changes, also Exit 3rd Trendline Breakout, FOMO
😊 Risk to Reward Ratio: 3
🕛 Expected Duration: 15 days
SUMMARY:
The analysis points toward a bearish sentiment, advocating for a sell decision. The entry is set at 0.8474, with a stop loss at 0.8590, take profit at 0.8133, and a risk-to-reward ratio of 3, expecting completion in approximately 15 days.
Will USDCHF breakout Tomorrow? (after US Inflation report)Will USDCHF breakout Tomorrow? (after US Inflation report)
USDCHF recently surpassed both its 50 and 100-hour moving averages, yet it remains confined within its 2024 trading range.
Fluctuations between risk-on and risk-off sentiments keep the pair moving between 0.84635 and 0.85294. Initially, bullish optimism followed comments from Atlanta Federal Reserve President Raphael Bostic, suggesting 2 potential interest rate cuts by the end of 2024. Additional news this week supporting the Swiss franc was the inflation rate in Switzerland rose to 1.7% in December 2023 from 1.4% in the previous month and above forecasts of 1.5%.
However, a recent shift towards risk aversion has led investors back to the US Dollar, however without creating a distinct market trend.
When will this non-trending market transition into a more trending market? Perhaps at the drop of the US inflation report tomorrow.
In the meantime, maintaining a bullish stance depends on the price staying above its elevated 100-hour moving average at 0.85100 and a break of the recent high at 0.8535 could instigate more buying momentum. A drop below this level could shift the bias towards neutrality.
USDCHF: Morgan Stanley: Fed will keep interest rates higher for Ellen Zentner, chief U.S. economist at Morgan Stanley, said:
"The Fed will cut interest rates this year."
But "the Fed can be patient and take its time."
Morgan Stanley expects the Fed to cut interest rates for the first time at its June meeting.
The Fed will keep interest rates stable for longer than the market expects.
But if that happens, there will be more cuts than expected.
The first rate cut of 25 basis points will take effect in June.
Subsequent rate cuts are expected to occur by 25 basis points at meetings in September, November, and December.
USDCHF - Look for a short ✅Hello traders!
‼️ This is my perspective on USDCHF.
Technical analysis: Here we are in a bearish market structure from 4H. timeframe perspective, so I am looking for short. I expect price to continue the retracement to fill the imbalance higher and then to react from institutional big figure 0.85000.
Fundamental news: Next week on Friday will be released NFP and Unemployment Rate in USA. News with a lot of impact.
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USDCHF - Still bearish ✅Hello traders!
‼️ This is my perspective on USDCHF
Technical analysis: Here we are still in a bearish market structure, so I see price to continue the retracement to fill the imbalance higher and then to reject from bearish order block for a short position.
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USDCHF - Short from premium zone ✅Hello traders!
‼️ This is my perspective on USDCHF.
Technical analysis: Here we are in a bearish market structure from 4H timeframe perspective, so I am looking for short from premium zone. I want price to continue the retracement to fill the imbalance higher and then to reject from bearish order block.
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USDCHF: BoA warns about investors being too optimistic about intA note from Bank of America's strategy department about the Fed follows
The market was ahead of expectations of 5 interest rate cuts next year from the Federal Open Market Committee (FOMC) and even more (6) from the European Central Bank. BoA believes that expectations need to be tempered due to:
Core inflation remains high
And inflation risks are higher in early 2024 as the base effects from energy prices fade.
In Europe:
Eurozone deflation at current levels could support interest rate cuts starting in March
USDCHF: The USD "struggled" to regain the 103 markIn the first session of the week, the US dollar fell a further 0.18% to $103.23 on expectations that the US Federal Reserve could complete and begin raising interest rates. Onion cuttings will be taken in the first half of next year. At the time, the DXY index was heading for a monthly decline of more than 3%, its biggest decline since November 2022. At the same time, investors are awaiting a series of events and data this week that could determine the future direction of the market. interest rates around the world.
Just a day later, the dollar fell a further 0.47% to $102.73, as investors continued to predict growth in the world's biggest economy would start to slow. Once again, the market is starting to factor in a rate cut in the first half of next year. According to CME's FedWatch tool, U.S. interest rate futures show a 33% chance that the Fed will cut interest rates in March 2024.
The U.S. dollar "barely" rose 0.12% to $102.86 on Nov. 30 after newly released data showed the U.S. economy grew faster than originally reported in the third quarter. . Head. According to information from the U.S. Department of Commerce, U.S. gross domestic product (GDP) increased by 5.2%, faster than the previously reported 4.9%. This was the largest increase since the fourth quarter of 2021 and exceeded economists' expectations of 5%.
According to reports, US inflation remains moderate, but on the first trading day of December, the DXY index once again reached the 103 level (up 0.75% to 103.51 points). The increase in jobless claims in October and last week shows the labor market is slowing. Accordingly, US inflation, as measured by the Personal Consumption Expenditure Index (PCE), was flat in October after rising 0.4% in September. Moreover, the PCE index recorded an increase every year. In October it was 3.0%. Meanwhile, the state's new unemployment claims rose by 7,000 last week to 218,000.
USDCHF: USD price dropped sharply after news of private sector eThe dollar fell against a basket of currencies late last week on news of strong U.S. business results in November, while private-sector employment fell on expectations of a slowdown in the coming months. Fourth quarter.
Earlier, Michael Brown, market analyst at Trader S&P Global, recorded the US Composite PMI Production Index on Friday.
Specifically, the value for the month remained unchanged at 50.7, as a slight increase in service sector activity offset the decline in production. Values above 50 indicate private sector expansion. The lack of significant growth in orders led to companies laying off employees, and the survey's employment index fell from 51.3 to 49.7, the first decline since June 2020. During October.
Easing the labor market will help the Fed fight inflation. Jane Foley, senior currency strategist at Rabobank, said the economic data provided further evidence of cyclical weakness in the US.
The U.S. dollar index posted its weakest monthly performance in a year amid growing expectations that the Federal Reserve will complete its interest rate hike and potentially start cutting rates next year. There is. .
USDCHF Long Term selling Trading IdeaHello Traders
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USDCHF: The US dollar rose on unemployment claims data, mixed The USD DXY index rose 0.30% to 103.90 as recent economic data and the Federal Reserve's minutes presented a complex scenario for investors to navigate. The increase came after the number of initial jobless claims was announced at 209,000, lower than expected. Despite this positive sign, investors are also considering a sharp decline in durable goods orders in October, down 5.4%.
The latest minutes from the Federal Open Market Committee (FOMC) show persistent concerns about inflation, suggesting that these concerns will influence future policy decisions. This led to a rise in U.S. Treasury yields across a range of maturities as investors digested mixed economic data. Looking ahead, market participants do not expect an interest rate hike in November. Instead, there are speculations that interest rates could be cut as early as March or May next year. This sentiment is reflected in the DXY technical analysis. The Relative Strength Index (RSI) remained unchanged near oversold conditions, which could indicate a resurgence of buying pressure. Meanwhile, the Moving Average Convergence Divergence (MACD) bar is still moving sideways in the red zone, indicating near-term bearish momentum.
Despite these mixed signals, the USD remains below the 20-day and 100-day SMAs (simple moving averages), but remains above the key 200-day SMA support. This position suggests that long-term bullish sentiment against the dollar may still exist despite the current bearish trend.
The dollar continues to assert its dominance in global finance, playing a central role in foreign exchange markets with a daily trading volume of more than $6.6 trillion, based on last year's data. This dominance highlights the currency's far-reaching influence and its resilience in the face of economic instability and changes in monetary policy.
USDCHF: Weak US CPI weighs heavily on the dollarAs anticipation that the Federal Reserve would terminate the monetary tightening cycle increased due to slowing U.S. inflation, the U.S. dollar made a slight recovery in early European trading on Wednesday.
The Dollar Index, which measures the value of the US dollar against a basket of six other currencies, increased by 0.1% to 104.057 at 03:05 ET (08:05 GMT), not far from a two-month low on Friday. In three, 103.98.
Tuesday saw a significant decline in the value of the US dollar after statistics revealed that US consumer prices were unchanged in October but increased 3.2% year over year, less than anticipated, following a 3.7% increase in September.
The most important factor in determining whether the Fed will continue to tighten policy is stable inflation, particularly when inflation increased more than
USDCHF - Potential short ✅Hello traders!
‼️ This is my perspective on USDCHF.
Technical analysis: As I expected in my previous analysis price delivered bearish move. Now I wait for a retracement price to fill the imbalance higher and then to reject from bearish order block + institutional big figure 0.90000.
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USDCHF - Bearish price action ✅Hello traders!
‼️ This is my perspective on USDCHF.
Technical analysis: Here we are in a bearish market structure from 4H timeframe perspective, so I am looking for a short position. I expect bearish price action from here as price almost filled the imbalance and rejected from that zone. My target is sell side liquidity around 0.89500.
Fundamental news: Next week on Tuesday will be released monthly and yearly CPI in USA, as well on Wednesday will be released monthly PPI and Retail Sales. News with impact on USD, so pay attention to the results in order to validate the analysis.
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