0.9500 Coming Into View For The USD/CHF
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.
+2021_03_25+(10_15_47+AM).png)
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.
ABOUT THE AUTHOR
See More
Sidebar rates
Add 3442
Related Posts
SaveAdd 3440
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals