Macro:
- Economic concerns in the US, including slowdown risks and trade policy uncertainties, have weakened the US dollar against the swiss franc, benefiting from its safe-haven status.
- Traders expect 0.75% in Fed rate cuts this year, with a Jun cut fully priced. Investors now await Wed's US inflation report for further cues.
- Meanwhile, net long dollar positions in currency futures markets have significantly dropped from Jan's nine-year high, which may reduce the further extreme reallocation away from USD.
Technical:
- USDCHF bounced after reaching the support cluster of 0.8770-0.8800, which coincides with the 100% Fibonacci Extension. The price is below both EMAs, indicating persistent bearish momentum.
- If USDCHF remains above the support area of 0.8770-0.8800, the price may retest the resistance area of 0.8900-0.8915.
- On the contrary, a closing below 0.8770 may prompt a continuous decline to retest the following support area of 0.8617-0.8650, confluence with the 161.8% Fibonacci Extension.
Analysis by: Dat Tong, Senior Financial Markets Strategist at Exness
- Economic concerns in the US, including slowdown risks and trade policy uncertainties, have weakened the US dollar against the swiss franc, benefiting from its safe-haven status.
- Traders expect 0.75% in Fed rate cuts this year, with a Jun cut fully priced. Investors now await Wed's US inflation report for further cues.
- Meanwhile, net long dollar positions in currency futures markets have significantly dropped from Jan's nine-year high, which may reduce the further extreme reallocation away from USD.
Technical:
- USDCHF bounced after reaching the support cluster of 0.8770-0.8800, which coincides with the 100% Fibonacci Extension. The price is below both EMAs, indicating persistent bearish momentum.
- If USDCHF remains above the support area of 0.8770-0.8800, the price may retest the resistance area of 0.8900-0.8915.
- On the contrary, a closing below 0.8770 may prompt a continuous decline to retest the following support area of 0.8617-0.8650, confluence with the 161.8% Fibonacci Extension.
Analysis by: Dat Tong, Senior Financial Markets Strategist at Exness
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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.
I’ve taken a break from my public community engagements to focus on raising my three kids, but I'm rediscovering my passion for working again. Stay connected, as I plan to return and rejoin my old communities with a lot of new skills one day soon.
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.