Hello everyone, as we all know the market action discounts everything :)
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The USD/CHF pair has been against a strong resistance zone at 0.92300 - 0.92500 with multiple top formations. USD/CHF went to the low of 0.9108 on August 4, after breaching 23.6% Fibonacci retracement, at 0.9192 However, the spot made a swift recovery back to the high of 0.9242 only to retrace toward 0.8140 in the previous week.
2 Different Scenarios for price movement in the next few days
Scenario 1 :
The price is trending close to the resistance line at 0.9164 a breakout of that line could indicate a change in the movement of the pair and the price could be headed near the second resistance zone at 0.92200 in the 23.60% Fibonacci level, and from there the Bulls will have to show a lot of support for the price to break that zone and change the trend.
Scenario 1 :
The price is getting closer to the support line at 0.9148 if the bears were able to break that line then a sudden change in price will happen and the bears will have enough moment to drive the price to near the 0.91100 support in the 50% Fibonacci level, where a test for the Bears power will happen and if they proved that they still hold control then most likely the price will drop below the 61.80 Fibonacci level and will be hitting the 0.90670 zone
Technical indicators are showing that :
1) The market price just dropped below the 5 10 MA and EMA, we could be seeing a small bearish movement, The price is still above the 20 50 100 200 MA EMA.
2) The MACD is above the 0 line Showing a Bullish state in the market, with a positive crossover between the MACD line and The Signal Line.
3) The ADX is at 22.39 showing that the market is currently trending, With a positive crossover between the DI+ (23.54) and DI- (21.30).
Support & Resistance points :
support Resistance
1) 0.91480 1) 0.91640
2) 0.91100 2) 0.92200
3) 0.90670 3) 0.92870
Fundamental point of view :
After touching the high of 0.9240 in the overnight session, USD/CHF continues to trade higher in the Asian trading hours on Friday The pair hovers in a narrow trade band with an upward bias. The appreciative move in the US dollar sponsored the move in the pair. The US dollar index remains strong above 93.00
The US Initial Jobless Claims fell for the third consecutive week, the readings came at 375K in the week ended on August 7 whereas, the Producer Purchase Index (PPI) gained 1% in July, higher than the market forecast of 0.6%.
Meanwhile, Kansas City Federal Reserve President Esther George said that the time had come to end the central bank’s asset purchase program.
On the other hand, the Swiss franc surrenders gains against the stronger US dollar.
As for now, traders are waiting for the Swiss Producer and Import price, US Michigan Consumer Sentiment data to gauge the market sentiment. According to Fxstreet
This is my personal opinion done with technical analysis of the market price and research online from fundamental analysts for The Fundamental point of view, not financial advice.
If you have any questions please ask and have a great day !!
Thank you for reading.
_________________________________Make sure to Like and Follow if you like the idea_________________________________
The USD/CHF pair has been against a strong resistance zone at 0.92300 - 0.92500 with multiple top formations. USD/CHF went to the low of 0.9108 on August 4, after breaching 23.6% Fibonacci retracement, at 0.9192 However, the spot made a swift recovery back to the high of 0.9242 only to retrace toward 0.8140 in the previous week.
2 Different Scenarios for price movement in the next few days
Scenario 1 :
The price is trending close to the resistance line at 0.9164 a breakout of that line could indicate a change in the movement of the pair and the price could be headed near the second resistance zone at 0.92200 in the 23.60% Fibonacci level, and from there the Bulls will have to show a lot of support for the price to break that zone and change the trend.
Scenario 1 :
The price is getting closer to the support line at 0.9148 if the bears were able to break that line then a sudden change in price will happen and the bears will have enough moment to drive the price to near the 0.91100 support in the 50% Fibonacci level, where a test for the Bears power will happen and if they proved that they still hold control then most likely the price will drop below the 61.80 Fibonacci level and will be hitting the 0.90670 zone
Technical indicators are showing that :
1) The market price just dropped below the 5 10 MA and EMA, we could be seeing a small bearish movement, The price is still above the 20 50 100 200 MA EMA.
2) The MACD is above the 0 line Showing a Bullish state in the market, with a positive crossover between the MACD line and The Signal Line.
3) The ADX is at 22.39 showing that the market is currently trending, With a positive crossover between the DI+ (23.54) and DI- (21.30).
Support & Resistance points :
support Resistance
1) 0.91480 1) 0.91640
2) 0.91100 2) 0.92200
3) 0.90670 3) 0.92870
Fundamental point of view :
After touching the high of 0.9240 in the overnight session, USD/CHF continues to trade higher in the Asian trading hours on Friday The pair hovers in a narrow trade band with an upward bias. The appreciative move in the US dollar sponsored the move in the pair. The US dollar index remains strong above 93.00
The US Initial Jobless Claims fell for the third consecutive week, the readings came at 375K in the week ended on August 7 whereas, the Producer Purchase Index (PPI) gained 1% in July, higher than the market forecast of 0.6%.
Meanwhile, Kansas City Federal Reserve President Esther George said that the time had come to end the central bank’s asset purchase program.
On the other hand, the Swiss franc surrenders gains against the stronger US dollar.
As for now, traders are waiting for the Swiss Producer and Import price, US Michigan Consumer Sentiment data to gauge the market sentiment. According to Fxstreet
This is my personal opinion done with technical analysis of the market price and research online from fundamental analysts for The Fundamental point of view, not financial advice.
If you have any questions please ask and have a great day !!
Thank you for reading.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.