⚡Crypto Alert : Altcoins are up 28% in just last month! Unlock gains and start trading now - Click Here

SNB opens the day, followed by the BOE and the ECB

0.9500 Coming Into View For The USD/CHF

Posted Thursday, March 25, 2021 by
Shain Vernier • 1 min read

March has been a solid period for USD/CHF bulls. Rates are up more than 300 pips since the first of the month amid consistently active market conditions. Given the Greenback’s strong performance, one has to wonder if the year-long bear market is winding down.

During the overnight and premarket hours, there were a few items that drove the action in the Swissy. Here’s a look at the key events:

Event                                          Actual                   Projected             Previous

SNB Rate Decision                     -0.75%                     -0.75%                    -0.75%

U.S. GDP (Q4)                                4.3%                        4.1%                      33.4%

PCE Prices (Q4)                              1.5%                         1.5%                      3.7%

First off, the Swiss National Bank (SNB) announced that it is going to hold interest rates static at -0.75%. This came as no surprise but did underline the persistent COVID-19 economic weakness of the eurozone. In the U.S., Q4 GDP was revised upward from 4.1% to 4.3%. Also, Q4 PCE inflation came in flat, hitting 1.5% as expected. Although neither of these figures is overly positive, they do indicate that the American economy is continuing to recover.

It’s been all-systems-go for USD/CHF bidders as 0.9500 comes into view.

USD/CHF Looks To Close March Strong

The USD/CHF chart below is a textbook example of an uptrend. Beginning in late-February, the USD/CHF moved directionally upward before pulling back and consolidating in mid-March. Now, 2021’s uptrend is being extended.

USD/CHF, Daily Chart
USD/CHF, Daily Chart

For the near future, there is one big-round-number on my radar:

  • Resistance(1): Psyche Level, 0.9500

Bottom Line: Even though 0.9400 and the upper Bollinger Band (0.9431) may set up as viable resistance, the USD/CHF bullish trend is strong. In my opinion, the odds of seeing a technical retracement from 0.9500 are a bit better than from 0.9400 or 0.9431.

Until elected, I’ll have sell orders in the queue from 0.9489. With an initial stop loss at 0.9529, this trade produces 40 pips on a 1:1 risk vs reward retracement from the 0.9500 handle.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Related Articles
Comments
0 0 votes
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments