Will MAs Keep USD/CHF Bearish As It Retraces Higher?
Skerdian Meta • 2 min read
USD/CHF has been bearish since October, and after a pause early this year, it resumed the ecline again in March, while picking up pace last week, as the USD decline resumed. Movinig averages were acting as resistance on the H4 chart djuring the decline, although we saw a reversal on Friday after hawkish comments from FED’s Waller, better UoM consumer sentiment and higher ionflation expectations.
CIBC expects that the Swiss National Bank (SNB) will tighten policy by another 50 bps in the future. As a result, they predict that the USD/CHF exchange rate will continue to decline, although that is not so straightforward now. They anticipate that USD/CHF will reach CHF0.8950, which is a level not seen since June 2021.
Although, right now this pair is feeling bullish as the USD regains momentum, so we are followingthe price action and looking how buyers will behave at the 50 SMA (yellow). The stochastic indicator is overbought, which is a sign that the retrace higher might be over and a reversal down might follow next, but we will see.