USDCHF Finds Support
The breakout above the falling wedge pattern in USDCHF saw price failing to close above the .9043 level. However, the subsequent turn lower has found buying pressure into the retest of the .8926 level. With the MACD still bullish and with the RSI showing big bullish divergence, there is the potential for the pair to carve out a double bottom here, suggesting upside risks in the near – medium term. On a break of .9043, .9189 is the target for bulls.
Key Data to Watch
The big data focus this week is of course the FOMC. On the back of last week’s positive CPI surprise, traders will be on the look out for any hawkish shift from the Fed. A few policymakers recently have suggested that tapering discussions are looming and, if the Fed is seen confirming this in any way, USD is likely to move sharply higher as the large short position unwinds further.
Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
Past performance is not indicative of future results.
High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% and 75% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Futures and Options: Trading futures and options on margin carries a high degree of risk and may result in losses exceeding your initial investment. These products are not suitable for all investors. Ensure you fully understand the risks and take appropriate care to manage your risk.
With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.