Tag: USD-CHF

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Forex Signals

Oversold USD/CHF Exhibiting a Bullish Correction 

The USD/CHF pair is trading bearish at 0.8862 level, and the continuation of an upward trend can extend buying trend until the next target level of 0.8874 level. So far, the pair has completed 38.2% Fibonacci retracement at 0.8874 level. Since the 10 & 20 periods, EMA supports bullish bias along with the MACD and RSI levels. On the higher side, a continuation of an upward trend can lead the USD/CHF pair towards the next target level of 0.8892. Check out a trading plan below: 

The USD/CHF pair is trading bearish at 0.8862 level, and the continuation of an upward trend can extend buying trend until the next target level of 0.8874 level. So far, the pair has completed 38.2% Fibonacci retracement at 0.8874 level. Since the 10 & 20 periods, EMA supports bullish bias along with the MACD and RSI levels. On the higher side, a continuation of an upward trend can lead the USD/CHF pair towards the next target level of 0.8892. Check out a trading plan below: 

The USD/CHF pair is trading bearish at 0.8862 level, and the continuation of an upward trend can extend buying trend until the next target level of 0.8874 level. So far, the pair has completed 38.2% Fibonacci retracement at 0.8874 level. Since the 10 & 20 periods, EMA supports bullish bias along with the MACD and RSI levels. On the higher side, a continuation of an upward trend can lead the USD/CHF pair towards the next target level of 0.8892. Check out a trading plan below: 


Entry Price – Buy 0.88715

Stop Loss – 0.88315

Take Profit – 0.89115

Risk to Reward – 1:1

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$40/ +$40

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

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Forex Course

199. Effects Of Gold On AUD/USD & USD/CHF Currency Pairs

Introduction Gold is among the most traded commodities globally due to the good intrinsic value of this asset. Considering that Gold is less impacted by uncertain conditions, its prices rise when other economies perform badly and fall when there is an economic boom. Gold impacts AUD/USD and USD/CHF in opposite manners. Price fluctuations in Gold […]

Introduction Gold is among the most traded commodities globally due to the good intrinsic value of this asset. Considering that Gold is less impacted by uncertain conditions, its prices rise when other economies perform badly and fall when there is an economic boom. Gold impacts AUD/USD and USD/CHF in opposite manners. Price fluctuations in Gold […]

Introduction

Gold is among the most traded commodities globally due to the good intrinsic value of this asset. Considering that Gold is less impacted by uncertain conditions, its prices rise when other economies perform badly and fall when there is an economic boom.

Gold impacts AUD/USD and USD/CHF in opposite manners. Price fluctuations in Gold primarily impact three major currencies that include AUD, USD, and CHF. Let’s discuss how Gold affects AUD/USD and USD/CHF.

The Effect of Gold in AUD/USD

When the price of gold rises, the AUD/USD will move upwards. These two aspects share a positive correlation; most of the time, they move together. An increase in the U.S. dollar generally contributes to the gold prices to fall and vice versa. The price of Gold perfectly depicts the economic health of the country.

During an economic crisis in the country, investors purchase Gold as protection from inflation or an economic crisis. But the inner value of the Gold does not change whether or not there is a crisis. Furthermore, gold value is displayed in the dollar, meaning every gold transaction, you spend/receive a dollar.

Australia’s Economy and its Impact on Gold Prices

AUD and Gold share a positive relationship and are inversely related to the USD. If the gold price rises, the Australian exports will increase, resulting in the expansion of the economy and foreign investment. When the gold price increases, the AUD/USD will move upwards because of the increasing demand for the AUD.

Impact on the USD/CHF

The Switzerland currency holds a positive correlation with Gold. This is because 25% of CHF is supported by the gold reserves. The refineries in Switzerland also process 70% unrefined gold every year. Additionally, Gold and CHF are inflation hedging during uncertain times.

Therefore, when the price of gold increases, the CHF value also appreciates or increases, vice-versa. Gold has a positive relationship with CHF and an inverse relationship with USD/CHF. When the price of gold rises, the value of USD/CHF falls down and vice-versa.

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Categories
Forex Fundamental Analysis

USD/CHF Global Macro Analysis – Part 3

USD/CHF Exogenous Analysis

USD/CHF Exogenous Analysis

USD/CHF Exogenous Analysis

The exogenous analysis covers fundamental indicators that can compare the performance of the US and Swiss economies. Note that this comparison between the two economies is what drives the exchange rate of USD/CHF. They are:

  • US and Swiss interest rate differential
  • The difference in the GDP growth in the US and Switzerland
  • Balance of trade differential

Balance of trade differential

For each country, the balance of trade shows the demand for the domestic currency in the international market. When a country has a surplus of the balance of trade, it means that its currency is in high demand in international trade. The rationale behind this is that when a country exports more than it imports, other countries will need more of that country’s currency to participate in international trade.

The balance of trade differential measures the difference between the balance of trade in Switzerland and the US. If the Swiss balance of trade is higher than that of the US, the USD/CHF pair will be bearish.

In October 2020, Switzerland had a trade surplus of CHF 2.9 billion while the US a deficit of $63.1 billion. Throughout 2020, the US trade deficit has been widening from $37 billion in January, while the Swiss trade surplus has increased from CHF 2.8 billion.

Based on the correlation with the USD/CHF pair, we assign the balance of trade differential a score of -5.

US and Switzerland interest rate differential

Typically, the country with a higher interest rate attracts more foreign capital seeking superior returns. A higher interest rate increases the domestic currency demand, which makes it appreciate in the forex market. More so, forex traders tend to be bullish on the currency with the higher interest rate.

The interest rate by The Swiss National Bank is -0.75% since January 2015. In the US, the federal funds rate is 0.25%. That makes the interest rate differential 1% for the USD/CHF pair.

Based on the correlation analysis with the USD/CHF pair, we assign the interest rate differential a score of 3.

The difference in the GDP growth in the US and Switzerland

A country’s GDP is primarily driven by domestic consumption. Although the GDP size differs in absolute terms, we can compare the US and Swiss GDP in terms of growth rate. An expanding economy is accompanied by appreciating currency. Therefore, if the US growth rate is higher than Switzerland’s, we can expect a bullish trend for the USD/CHF pair.

In Q3 of 2020, the Swiss economy expanded by 7.2% and the US by 33.1%. It means that the US economy is recovering faster than that of Switzerland. We, therefore, assign a score of 2. This implies that the GDP growth rate differential between the US and Switzerland has led to a bullish USD/CHF.

Conclusion

The USD/CHF pair has an exogenous score of -2. This implies that we can expect the pair to continue with its current bearish trend in the near future.

Note that the USD/CHF pair has breached the lower Bollinger band. Therefore, we can expect the downtrend to continue for a while, which supports our fundamental analysis. All the best.

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Forex Fundamental Analysis

USD/CHF Global Macro Analysis – Part 1 & 2

Introduction

Introduction

Introduction

When conducting the global macroeconomic analysis, endogenous and exogenous factors are considered. These analyses can be used to explain the price dynamic of a currency pair. In this case, we will analyze the endogenous factors that drive the economy in the US and Switzerland. We will also analyze the exogenous factors that primarily drives the price of the USD/CHF pair.

Ranking Scale

A sliding scale from -10 to +10 will be sued to ranks the impact of the individual endogenous and exogenous factors on the currency. A negative ranking for the endogenous factors means that they had a depreciating impact on the individual currencies, while a positive ranking means they resulted in currency appreciating.

Similarly, a negative ranking for the exogenous factors implies that they’ve had a bearish impact on the currency pair, while a positive ranking means they’ve had a bullish impact.

Summary of USD Endogenous Analysis

From the above table, we can see a clear deflationary effect on the USD currency and implies that it has depreciated in its value since the beginning of the year. You can find the complete USD Endogenous Analysis here.

Summary of CHF Endogenous Analysis

Overall, the endogenous analysis of CHF has a score of -5. That implies that the CHF is expected to have depreciated marginally in 2020.

  • Switzerland Inflation Rate

The rate of inflation is used to measure the changes in the price of consumer goods in Switzerland over a specified period – usually monthly or yearly. Here are the components of the CPI in Switzerland: Housing and energy, which accounts for 25% of the total CPI weight; 16% for healthcare; Transport accounts for 11%; Food and non-alcoholic drinks 11%; hotel and restaurant services 8%; 4% for Household goods and services; and clothing 3%. Education, communication services, and alcoholic beverages cumulatively account for 7% of the total CPI weight.

In November 2020, the YoY CPI in Switzerland dropped by 0.7%, while the MoM CPI dropped by 0.2%. The fall in prices of the hotel and holiday packages contributed to the drop in the inflation rate. The Switzerland CPI is at the lowest point since January 2018.

Based on our correlation analysis, we assign the Switzerland rate of inflation a score of -3.

  • Switzerland Unemployment Rate

This economic indicator shows the percentage of the total Swiss labor force that is actively seeking a job. Note that not all unemployed portion of the working-age population are seeking employment; so, they are not captured by the unemployment rate.

The unemployment rate can also be used to show the rate at which the economy is adding or cutting job opportunities. This can be used to show economic growth.

In October 2020, the Swiss unemployment rate was 3.2%, down from highs of 3.4% in May, while the employment rate in Q3 2020 was 79.7%. Although it is higher than the 79.1% registered in Q2, it is still significantly lower than the pre-pandemic rate of 80.4%.

The Swiss unemployment rate has a high correlation with the GDP, but since it only increased marginally, we assign it a score of -2.

  • Switzerland Manufacturing PMI

The Swiss procure.ch Manufacturing Purchasing Managers’ Index surveys the executives in the manufacturing sector. The index is a measure of the Swiss manufacturing sector’s performance and serves as a leading indicator for business expectations.

The Manufacturing PMI is an aggregate of five components: new orders, which a weight of  30%, output 25%, employment 20%, supplies 15%, and inventory 10%. The manufacturing sector is expected to expand when the index is above 50 and contract when the index is below 50.

In November 2020, the Swiss procure.ch Manufacturing PMI increased to 55.2, the highest since December 2018. Based on the correlation analysis with the GDP, we assign a score of 7 since it shows a robust expansion.

The Swiss services industry employs over 60% of the working population and accounts for 73% of Switzerland’s GDP. This makes the services PMI a crucial indicator of the overall economy. The Services PMI is obtained through a comprehensive survey of 300 purchasing managers in the services sector to evaluate the changes in business activities.

The survey covers areas such as customer new orders, purchasing, and sales prices, and changes in the employment level.

In November 2020, the Swiss services PMI dropped to 48 from 50.4 in October, primarily attributed to new orders’ contraction. Although it is almost double the 21.4 recorded in April, it is still lower than the 57.3 recorded in January 2020. We, therefore, assign it a score of -4.

  • Switzerland Consumer Confidence

In Switzerland, consumer confidence is used to evaluate households’ opinion on the overall economy and their financial position. Typically, consumer confidence is higher when there is high GDP growth, and the unemployment rate is low.

In the fourth quarter of 2020, the Swiss consumer confidence was -12.8, better than Q2 -39.3. Consumer confidence is used to show the likelihood of how much households will spend in the economy. Hence we assign it a score of -2.

  • Switzerland Government Gross Debt to GDP

The Swiss government debt is the totality of the government’s amount owed to both domestic and foreign lenders. This debt is expressed as a percentage of the GDP o help determine the indebtedness of the economy. Lenders also use this metric to determine if there is a possibility of default by the government. Typically, government debt that is less than 60% of the economy is considered ideal.

In 2019, Switzerland’s government gross debt to GDP was 41%, and it’s projected to hit 49% in 2020 due to increased government expenditure to curb the economic slowdown brought about by the coronavirus pandemic. However, the Swiss government’s gross debt to GDP has been steadily declining since 2004, averaging at around 37%. Based on our correlation analysis and the fact that it has marginally increased in 2020, we assign a score of -1.

Now we know that both USD and CHF have depreciated according to their respective endogenous indicators. Please check our next article to know if this pair is expected to be bullish or bearish in the near future according to their exogenous indicators. Cheers.

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Forex Signals

USD/CHF Violates Descending Triangle Pattern – Brace for a Sell Signal! 

During Wednesday’s trading session, the USD/CHF currency pair failed to stop its previous-day bearish bias and remained pessimistic around below the 0.8900 level. However, the reason for the bearish tone around the currency pair could be associated with the broad-based U.S. dollar weakness. The U.S. dollar was being pressured by the optimism over the potential vaccine for the hazardous coronavirus infection, which urges investors to retreat from the safe-haven assets. 

During Wednesday’s trading session, the USD/CHF currency pair failed to stop its previous-day bearish bias and remained pessimistic around below the 0.8900 level. However, the reason for the bearish tone around the currency pair could be associated with the broad-based U.S. dollar weakness. The U.S. dollar was being pressured by the optimism over the potential vaccine for the hazardous coronavirus infection, which urges investors to retreat from the safe-haven assets. 

During Wednesday’s trading session, the USD/CHF currency pair failed to stop its previous-day bearish bias and remained pessimistic around below the 0.8900 level. However, the reason for the bearish tone around the currency pair could be associated with the broad-based U.S. dollar weakness. The U.S. dollar was being pressured by the optimism over the potential vaccine for the hazardous coronavirus infection, which urges investors to retreat from the safe-haven assets. 

Apart from this, the U.S. dollar losses could also be attributed to the on-going concerns of further monetary easing by the U.S. Federal Reserve, which adds burden around the U.S. dollar and contributes to the currency pair losses. On the contrary, the upbeat market sentiment boosted investors’ confidence and undermined the safe-haven Swiss Franc, which, in turn, was seen as one of the leading factors that help the USD/CHF currency pair to limit its deeper losses. Currently, the USD/CHF currency pair is currently trading at 0.8879 and consolidating in the range between 0.8871 – 0.8897.

The equity market had been flashing green since the Asian session started. The reason could be associated with the major positive catalysts. Be it the renewed probabilities of the U.S. aid package or optimism over treatment for the highly infectious coronavirus, both factors have favored the market trading sentiment. Therefore, the risk-on market mood tends to undermine the safe-haven Swiss franc, which becomes the key factor that lends some support to the currency pair to ease the intraday bearish pressure surrounding the USD/CHF currency pair.

The hopes of potential vaccines were further boosted after the U.K.’s has started vaccination, witnessed after the 1st-patients inoculated with BNT162b2, the COVID-19 vaccine co-developed by Pfizer (NYSE: PFE) and BioNTech SE (F:22UAy). In addition to this, the sentiment around the equity market was improved further after House Speaker Nancy Pelosi told that the stimulus discussions had made good progress. Meanwhile, the U.S. Treasury Secretary Steve Mnuchin offers a larger amount than the previously highlighted $908 billion for the stimulus package. 

At the USD front, the broad-based U.S. dollar failed to stop its bearish trend and remained depressed on the day as doubts persist over the U.S. economic recovery from COVID-19. Besides this, the risk-on market sentiment, backed by the optimism over a potential vaccine for the highly contagious coronavirus disease, also played its major role in undermining the safe-haven U.S. dollar. Besides this, the U.S. dollar losses could also be attributed to the concerns of further monetary easing by the U.S. Federal Reserve, which tends to undermine the American currency. However, the losses in the U.S. dollar becomes the key factor that kept the currency pair lower. Meantime, the U.S. Dollar Index, which tracks the greenback against a bucket of other currencies, dropped to 90.778.

Conversely, the optimism around the equity market was slightly unaffected by the intensifying market worries regarding the continuous surge in new coronavirus cases in the U.S. and Europe, which fueled the global economic recovery concerns imposing new lockdown restrictions on economic and social activity. Furthermore, the equity market gains were also capped by the lingering uncertainty over the Brexit deal and intensified China-US tussles over the U.S. sanctions on Chinese diplomats and the arrest of the Hong Kong opposition party members by police.

Moving ahead, the market traders will keep their eyes on the U.S. stimulus headlines and vaccine news. In the meantime, the updates surrounding the Brexit trade talks and the Sino-US tussle could not lose their importance on the day.

Daily Support and Resistance

S1 0.8767

S2 0.8839

S3 0.8874

Pivot Point 0.8911

R1 0.8946

R2 0.8982

R3 0.9054

Technically, the USD/CHF pair is gaining support above the 0.8875 mark, and it’s triggered an upward wave to achieve a 23.6% Fibonacci retracement mark of 0.8935. On the further higher front, an upward movement and violation of 0.8933 mark can drive more buying trend unto next Fibo level of 61.8% at 0.8965. However, the pair has formed a descending triangle pattern which, if violated, can send the pair until the 0.8835 level. Check out a trading plan below. 

Entry Price – Sell 0.88778

Stop Loss – 0.89178

Take Profit – 0.88378

Risk to Reward – 1:1

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$40/ +$40

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

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Forex Signals

Trend Pullback In USD/CHF Pair

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Forex Signals

USD/CHF Heading North to Complete 38.2% Fibonacci Level – Brace for Buying! 

The USD/CHF trade is sharply bearish to drop until the 0.8885 level, holding above a support level of 0.8880 amid a stronger U.S. dollar. The tussle between China and the U.S. kept gaining market attention and challenged the market risk tone. As per the latest report, the Trump administration was preparing sanctions on at least a dozen Chinese officials in the wake of their alleged role in China’s disqualification of elected opposition legislators in Hong Kong.

The USD/CHF trade is sharply bearish to drop until the 0.8885 level, holding above a support level of 0.8880 amid a stronger U.S. dollar. The tussle between China and the U.S. kept gaining market attention and challenged the market risk tone. As per the latest report, the Trump administration was preparing sanctions on at least a dozen Chinese officials in the wake of their alleged role in China’s disqualification of elected opposition legislators in Hong Kong.

The USD/CHF trade is sharply bearish to drop until the 0.8885 level, holding above a support level of 0.8880 amid a stronger U.S. dollar. The tussle between China and the U.S. kept gaining market attention and challenged the market risk tone. As per the latest report, the Trump administration was preparing sanctions on at least a dozen Chinese officials in the wake of their alleged role in China’s disqualification of elected opposition legislators in Hong Kong.

As in result, the broad-based U.S. dollar managed to stop its early day losses and picked some bids during the early European session as the traders started to cheering the risk-off marker mood. However, the U.S. dollar bullish bias was rather unaffected by the worsening coronavirus (COVID-19) conditions in the U.S., or the disappointing U.S. jobs data, which raised expectations of fresh economic stimulus measures. However, the gains in the U.S. dollar turned out to be one of the leading factors that help the currency pair to limit its deeper losses. Meanwhile, the U.S. Dollar Index that tracks the greenback against a bucket of other currencies rose to 90.850.

On the other hand, the optimism over treatment for the highly infectious coronavirus becomes the key factor that helps the market trading sentiment stop its bearish rally, which might support the currency pair. The hopes of vaccine fueled further after the reports suggesting that the U.K.is set to become the 1st-country to roll out BNT162b2, the COVID-19 vaccine developed by Pfizer Inc (NYSE: PFE) and BioNTech SE (F:22UAy), this week.

In the absence of the key data/events on the day, the market traders will keep their eyes on RBA Gov Lowe Speaks. In addition to this, the updates about the U.S. stimulus package will also be key to watch. In the meantime, the risk catalyst like geopolitics and the virus woes, not to forget the Brexit, will not lose their importance.


Daily Support and Resistance   

S1 0.8833

S2 0.8871

S3 0.8895

Pivot Point 0.8909

R1 0.8933

R2 0.8947

R3 0.8985

Technically, the USD/CHF pair is gaining support above the 0.8886 mark, and it’s triggered an upward wave to achieve a 23.6% Fibonacci retracement mark of 0.8935. On the further higher front, an upward movement and violation of 0.8933 mark can drive more buying trend unto next Fibo level of 61.8% at 0.8965. Check out a trading plan below. 

Entry Price – Buy 0.89342

Stop Loss – 0.88942

Take Profit – 0.89942

Risk to Reward – 1:1

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$40/ +$40

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

Categories
Forex Signals

USD/CHF Violates Descending Triangle Pattern – Quick Trade Setup! 

During Thursday’s early European trading hours, the USD/CHF currency pair failed to stop its overnight bearish bias and remained depressed for the 3rd-consecutive session on the day. However, the reason for the bearish bias around the currency pair could be associated with the broad-based U.S. dollar weakness, triggered by hopes for additional U.S. fiscal stimulus from the U.S. Federal Reserve. Moreover, the U.S. economic recovery concerns amid intensifying coronavirus woes also exerted downside pressure on the American currency, which turned out to be one of the major factors that kept the currency pair under pressure. 

During Thursday’s early European trading hours, the USD/CHF currency pair failed to stop its overnight bearish bias and remained depressed for the 3rd-consecutive session on the day. However, the reason for the bearish bias around the currency pair could be associated with the broad-based U.S. dollar weakness, triggered by hopes for additional U.S. fiscal stimulus from the U.S. Federal Reserve. Moreover, the U.S. economic recovery concerns amid intensifying coronavirus woes also exerted downside pressure on the American currency, which turned out to be one of the major factors that kept the currency pair under pressure. 

During Thursday’s early European trading hours, the USD/CHF currency pair failed to stop its overnight bearish bias and remained depressed for the 3rd-consecutive session on the day. However, the reason for the bearish bias around the currency pair could be associated with the broad-based U.S. dollar weakness, triggered by hopes for additional U.S. fiscal stimulus from the U.S. Federal Reserve. Moreover, the U.S. economic recovery concerns amid intensifying coronavirus woes also exerted downside pressure on the American currency, which turned out to be one of the major factors that kept the currency pair under pressure. 

Across the pond, the disappointing ADP report on private-sector employment fueled worries about the economic fallout from the continuous surge in new COVID-19 cases in the United States, which also exerted downside pressure on the market trading sentiment and contributed to the currency pair losses. In the meantime, the on-going uncertainty over Brexit trade talks and worries of trade/political war between the West and China provides additional support to the safe-haven Swiss Francs, which adds further burden around the currency pair. Conversely, the selling bias surrounding the equity market was capped by the optimism over a potential vaccine for the hazardous coronavirus infection, which might help the currency pair limit its deeper losses. 

The market risk-on tone faded instantly after the Trump administration issued new guidelines restricting travel to the U.S. by members of the Chinese Communist Party, which tend to fuel already intensified tension between the United States and China. Across the pond, the rising COVID-19 cases still not showing any sign of slowing down, which in turn strengthened lockdown restrictions across Europe and the U.S. As per the latest report, Germany and France have been introducing new measures to curb the virus spread. These concerns kept fueling the global economic recovery worries and kept the market trading sentiment under pressure. 

Despite the risk-off-market sentiment, the broad-based U.S. dollar failed to stop its previous session declining streak and remained bearish on the day as doubts persist over the global economic recovery from COVID-19. Furthermore, the U.S. Federal Reserve’s expectations of further monetary easing also weigh on the U.S. dollar. Besides this, the encouraging data from COVID-19 vaccine developers urge investors towards riskier currencies and higher-yielding assets against the safe-haven asset, which eventually leads to losses in the safe-haven U.S. dollar. However, the U.S. dollar losses became the key factor that kept the currency pair under pressure. 

On the contrary, the bearish bias around the equity market was capped by the prevalent optimism over a possible vaccine for the highly infectious coronavirus disease. However, the hopes of the vaccine were boosted after the United Kingdom became the first country to approve a vaccine jointly developed by Pfizer and BioNTech. These optimistic hopes become the key factor that lends some support to the currency pair to ease the intraday bearish pressure surrounding the USD/CHF currency pair.  


Looking forward, the market traders will keep their eyes on the Unemployment Claims and the Final Services PMI for fresh directions. In addition to this, the risk catalyst like geopolitics and the virus woes, not to forget the Brexit, will not lose their importance.

Daily Support and Resistance

S1 0.8828

S2 0.8898

S3 0.8922

Pivot Point 0.8968

R1 0.8991

R2 0.9038

R3 0.9107

The market’s technical side is exhibiting a sharp bearish bias for the USD/CHF as the pair is trading at a 0.8907 level. The USD/CHF pair has recently violated the descending triangle pattern on the daily timeframe, driving a sharp selling trend in the pair. For now, the pair may find resistance at 0.89500 and 0.9000 level while the support stays at the 0.8843 level. Let’s consider taking a buying trade near the 0.8843 level today. Good luck! 

Categories
Forex Signals

USD/CHF Bearish Bias Continues to Dominate – Sell Signal Update!

During Monday’s Asian trading hours, the USD/CHF currency pair failed to extend its last week winning streak and edged lower around the 0.9027 level. However, the bearish tone around the currency pair could be associated with the broad-based U.S. dollar weakness, triggered by the possibilities of further monetary easing by the U.S. Federal Reserve, which weakens the U.S. dollar and contributes to the currency pair losses. Moreover, the optimism over a potential vaccine for the highly dangerous coronavirus infection urges investors to retreat from the safe-haven asset, which also kept the U.S. dollar on the defensive and push the currency pair down. In that way, the COVID-19 vaccine optimism also weighed on the safe-haven CHF and became the key factor that helps the currency pair to limit its deeper losses. On the contrary, the on-going uncertainty over Brexit trade talks and fears of a full-fledged trade/political war between the West and China keep probing the upbeat market performance, which might push the currency pair further down. Currently, the USD/CHF currency pair is currently trading at 0.9029 and consolidating in the range between 0.9026 – 0.9047.

During Monday’s Asian trading hours, the USD/CHF currency pair failed to extend its last week winning streak and edged lower around the 0.9027 level. However, the bearish tone around the currency pair could be associated with the broad-based U.S. dollar weakness, triggered by the possibilities of further monetary easing by the U.S. Federal Reserve, which weakens the U.S. dollar and contributes to the currency pair losses. Moreover, the optimism over a potential vaccine for the highly dangerous coronavirus infection urges investors to retreat from the safe-haven asset, which also kept the U.S. dollar on the defensive and push the currency pair down. In that way, the COVID-19 vaccine optimism also weighed on the safe-haven CHF and became the key factor that helps the currency pair to limit its deeper losses. On the contrary, the on-going uncertainty over Brexit trade talks and fears of a full-fledged trade/political war between the West and China keep probing the upbeat market performance, which might push the currency pair further down. Currently, the USD/CHF currency pair is currently trading at 0.9029 and consolidating in the range between 0.9026 – 0.9047.

During Monday’s Asian trading hours, the USD/CHF currency pair failed to extend its last week winning streak and edged lower around the 0.9027 level. However, the bearish tone around the currency pair could be associated with the broad-based U.S. dollar weakness, triggered by the possibilities of further monetary easing by the U.S. Federal Reserve, which weakens the U.S. dollar and contributes to the currency pair losses. Moreover, the optimism over a potential vaccine for the highly dangerous coronavirus infection urges investors to retreat from the safe-haven asset, which also kept the U.S. dollar on the defensive and push the currency pair down. In that way, the COVID-19 vaccine optimism also weighed on the safe-haven CHF and became the key factor that helps the currency pair to limit its deeper losses. On the contrary, the on-going uncertainty over Brexit trade talks and fears of a full-fledged trade/political war between the West and China keep probing the upbeat market performance, which might push the currency pair further down. Currently, the USD/CHF currency pair is currently trading at 0.9029 and consolidating in the range between 0.9026 – 0.9047.

The prevalent optimism over a possible vaccine for the highly infectious coronavirus disease keeps providing a boost to the market risk tone. However, the hopes of the vaccine were boosted after pharmaceutical regulators from the U.S., Europe, and the U.K. showed readiness for approving the leading vaccines that have shown almost 90% effective rates during the final rates, which in turn, boosted the hopes of the early arrival of the much-awaited cure to the pandemic. Thus, the risk-on market mood tends to undermine the safe-haven Swiss franc, which becomes the key factor that lends some support to the currency pair to ease the intraday bearish pressure surrounding the USD/CHF currency pair.


Daily Support and Resistance
S1 0.8969
S2 0.9012
S3 0.9029
Pivot Point 0.9056
R1 0.9072
R2 0.9099
R3 0.9143

The USD/CHF has violated the support level of 0.9036 level, and the closing of a candle below the 0.9036 level of 0.9036 can extend selling bias until the 0.8983 level. The MACD has crossed below 0 level suggesting odds of selling trend continuation. Thus, we have opened a sell trade; here is a trade plan below.

Entry Price – Buy 0.9025

Stop Loss – 0.9065

Take Profit – 0.8985

Risk to Reward – 1:1

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$40/ +$40

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

 

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Forex Signals

Descending Triangle Pattern in the USD/CHF – Is It Going to Break Lower?

During Monday’s Asian trading hours, the USD/JPY currency pair failed to stop its overnight bearish moves and caught further offers below the 0.9100 level. However, the reason for the bearish tone around the currency pair could be associated with the broad-based U.S. dollar weakness, triggered by the risk-on market mood, which tends to weaken the safe-haven U.S. dollar. Hence, optimism was supported by optimism over a potential vaccine/treatment for the highly infectious coronavirus. In that way, the positive tone around the equity market also weakened the safe-haven Swiss franc and became the factor that cap further downside momentum for the USD/CHF currency pair. Currently, the USD/CHF currency pair is currently trading at 0.9099 and consolidating in the range between 0.9095 – 0.9117.

During Monday’s Asian trading hours, the USD/JPY currency pair failed to stop its overnight bearish moves and caught further offers below the 0.9100 level. However, the reason for the bearish tone around the currency pair could be associated with the broad-based U.S. dollar weakness, triggered by the risk-on market mood, which tends to weaken the safe-haven U.S. dollar. Hence, optimism was supported by optimism over a potential vaccine/treatment for the highly infectious coronavirus. In that way, the positive tone around the equity market also weakened the safe-haven Swiss franc and became the factor that cap further downside momentum for the USD/CHF currency pair. Currently, the USD/CHF currency pair is currently trading at 0.9099 and consolidating in the range between 0.9095 – 0.9117.

During Monday’s Asian trading hours, the USD/JPY currency pair failed to stop its overnight bearish moves and caught further offers below the 0.9100 level. However, the reason for the bearish tone around the currency pair could be associated with the broad-based U.S. dollar weakness, triggered by the risk-on market mood, which tends to weaken the safe-haven U.S. dollar. Hence, optimism was supported by optimism over a potential vaccine/treatment for the highly infectious coronavirus. In that way, the positive tone around the equity market also weakened the safe-haven Swiss franc and became the factor that cap further downside momentum for the USD/CHF currency pair. Currently, the USD/CHF currency pair is currently trading at 0.9099 and consolidating in the range between 0.9095 – 0.9117.

While discussing the positive side of the story, the renewed optimism over a possible vaccine for the highly infectious coronavirus disease boosted the market risk tone. However, the hopes of the vaccine were boosted after Gilead Sciences received US FDA approval for its antiviral therapy to treat the highly contagious coronavirus disease. Elsewhere, the reasons for the risk-on market trading sentiment could also be attributed to rising expectations of further U.S. stimulus package. These hopes were fueled by the positive remarks of President Donald Trump and House of Representatives Speaker Nancy Pelosi, which eventually raised hopes for the measures to be passed before the election. 

Despite the worries over the coronavirus pandemic’s resurgence, the renewed optimism over a possible vaccine for the highly infectious coronavirus disease boosted the market risk tone. These hopes were boosted after reports suggesting that the vaccinations against coronavirus disease in America may start in 3-weeks, as the FDA will approve drugmaker Pfizer and German partner BioNTech’s experimental candidate in mid-December. Simultaneously, the U.K. is expected to give a green signal to Pfizer’s vaccine this week. This, in turn, boosted hopes for a global economic recovery in 2021. Thus, the risk-on market mood tends to undermine the safe-haven Swiss franc, which becomes the key factor that lends some support to the currency pair to ease the intraday bearish pressure surrounding the USD/CHF currency pair.

As a result of the upbeat market sentiment, the broad-based U.S. dollar failed to gain any bullish traction and edged lower on the day as doubts persist over the global economic recovery from COVID-19. Besides this, the risk-on market sentiment, backed by the optimism over a potential vaccine for the highly contagious coronavirus disease, also played its major role in undermining the safe-haven U.S. dollar. However, the losses in the U.S. dollar becomes the key factor that kept the currency pair lower. Meantime, the U.S. Dollar Index, which tracks the greenback against a bucket of other currencies, was down at 92.707.

Across the ocean, the optimism around the equity market was rather unaffected by the intensifying market worries regarding the continuous surge in new coronavirus cases in Europe and the United States, which keep fueling the doubts over the global economic recovery through imposing new lockdown restrictions on economic and social activity. Apart from this, the long-lasting inability to pass the U.S. fiscal package and the jitters over the Sino-US also capped upside momentum for the trading sentiment.

Looking ahead, the market traders will keep their eyes on U.S. Markit Manufacturing PMIs, which are scheduled to release later in the day. All in all, the updates surrounding the Brexit, virus, and U.S. stimulus package will not lose their importance. 

Daily Support and Resistance

S1 0.9045

S2 0.9077

S3 0.9094

Pivot Point 0.9109

R1 0.9125

R2 0.9141

R3 0.9172

The USD/CHF is trading over 0.9093 level, testing the support level of 0.9093 for the fourth time now. Typically the descending triangle pattern breaks on the lower side, and that’s what we are expecting today. If this happens, we may see USD/CHF pair falling towards the 0.9033 area. Checkout a trade plan below…

Entry Price – Sell 0.90995

Stop Loss – 0.91395

Take Profit – 0.90595

Risk to Reward – 1:1

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$40/ +$40

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

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Forex Signals

USD/CHF Breaks Above Descending Triangle – Watch out! 

The USD/CHF failed to stop its overnight losing streak and remain depressed around just above the 0.9100 level mainly due to the worsening coronavirus (COVID-19) woes in the U.S., Europe, and some of the notable Asian nations like Japan, which eventually exerted downside pressure on the market trading sentiment and contributed to the currency pair losses. 

The USD/CHF failed to stop its overnight losing streak and remain depressed around just above the 0.9100 level mainly due to the worsening coronavirus (COVID-19) woes in the U.S., Europe, and some of the notable Asian nations like Japan, which eventually exerted downside pressure on the market trading sentiment and contributed to the currency pair losses. 

The USD/CHF failed to stop its overnight losing streak and remain depressed around just above the 0.9100 level mainly due to the worsening coronavirus (COVID-19) woes in the U.S., Europe, and some of the notable Asian nations like Japan, which eventually exerted downside pressure on the market trading sentiment and contributed to the currency pair losses. 

Apart from this, the geopolitical tensions between China and some notable countries like the U.S. added a burden around the equity market. Thereby, the risk-off market sentiment underpins the safe-haven Swiss franc and contributes to the currency pair losses. Conversely, the broad-based U.S. dollar strength, backed by the market risk-off tone, has become the key factor that kept the lid on any additional losses in the currency pair. 

In the meantime, the fresh optimism over Brexit talks and the positive news about vaccine progress help the market trading sentiment limit its deeper losses, which might provide some support to the currency pair. As of writing, the USD/CHF currency pair is currently trading at 0.9109 and consolidating in the range between 0.9104 – 0.9126.

Despite the renewed optimism over the possible vaccine for the highly infectious coronavirus disease, the market trading sentiment failed to extend its overnight positive performance. It started to flash red during the Asian session on the day, possibly due to the combination of factors. Be it the worrisome headlines concerning the US-China tussle or the resurgence of COVID-19 new cases in the U.S., Europe, and Japan; everything has been weighing on the market trading sentiment. This, in turn, provided a boost to the safe-haven Swiss Franc and exerted some additional pressure on the currency pair.

As per the latest Johns Hopkins University report, the global cases crossed 56 million figures, of which 11.5 million are in the U.S., along with nearly 250,000 deaths, nearly one-fifth of total global deaths. Not only from the U.S. but Tokyo also alarmed investors. As in result, New York restricts personal presence at the schools while Japan alarmed alerts in the capital after the daily cases rise crosses 500 on November 16. It is worth mentioning that Japan’s COVID-19 cases raised past-2,000 for the first time since the virus outbreak began. At the same time, Germany reported 22,609 new coronavirus infections, the 3rd-highest daily hike on record. Two hundred fifty-one deaths were recorded, as the total fatalities reached 13,370 so far.

Considering the current condition of virus spreading, Poland is also thinking about imposing a nationwide lockdown while major European economies, including France, Italy, Spain, and the U.K., are already under lockdowns. This, in turn, exerted downside pressure on the market risk tone and contributed to currency pair gains.

Elsewhere, the U.S., U.K., and Australia recently released a joint statement showing their disappointment over the Dragon Nation’s performance in Hong Kong. The global policymakers urged the Asian major to respect international commitment while urging to stop threatening Hong Kong peoples. 

As in result, the broad-based U.S. dollar managed to keep its gains throughout the Asian session as the traders are still cheering the risk-off marker mood. However, the U.S. dollar bullish bias was rather unaffected by the worsening coronavirus (COVID-19) conditions in the U.S. or the US COVID-19 aid package delay. However, the U.S. dollar gains turned out to be one of the leading factors that help the currency pair limit its deeper losses. Simultaneously, the U.S. Dollar Index that tracks the greenback against a bucket of other currencies rose to 92.448.

Looking forward, the traders will keep their eyes on U.S. Unemployment Claims along with Philly Fed Manufacturing Index. In the meantime. The release of Trade Balance will be key to watch. Across the pond, the ongoing drama surrounding the US-China relations and updates about the U.S. stimulus package will not lose their importance. 


Daily Support and Resistance

S1 0.9049

S2 0.908

S3 0.91

Pivot Point 0.9111

R1 0.9131

R2 0.9143

R3 0.9174

The USD/CHF has violated the descending triangle pattern, extending resistance at 0.9148 level. Previously, the USD/CHF was extending resistance at the 0.9120 level, and since this level has already been violated, we may have further upward movement until 0.9150 and 0.9199 level. The MACD is also supporting the buying trend; therefore, we can try to capture a quick buy trade over the 0.9110 level today. Good luck!  

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Forex Signals

USD/CHF Set for Bearish Correction – U.S. Elections in Play!  

During Tuesday’s Early Asian trading session, the USD/CHF extended its overnight losses and remain depressed around just above the 0.9167 support level mainly due to the broad-based U.S. dollar weakness. However, the prevalent downtrend in the greenback is mainly tied to the upbeat activity numbers from the U.S., China, and Europe, which rekindled economic recovery hopes and kept market trading sentiment positive. Moreover, the political uncertainty in the U.S. also weighs on the already weaker U.S. dollar, which adds further burden around the currency pair.

During Tuesday’s Early Asian trading session, the USD/CHF extended its overnight losses and remain depressed around just above the 0.9167 support level mainly due to the broad-based U.S. dollar weakness. However, the prevalent downtrend in the greenback is mainly tied to the upbeat activity numbers from the U.S., China, and Europe, which rekindled economic recovery hopes and kept market trading sentiment positive. Moreover, the political uncertainty in the U.S. also weighs on the already weaker U.S. dollar, which adds further burden around the currency pair.

During Tuesday’s Early Asian trading session, the USD/CHF extended its overnight losses and remain depressed around just above the 0.9167 support level mainly due to the broad-based U.S. dollar weakness. However, the prevalent downtrend in the greenback is mainly tied to the upbeat activity numbers from the U.S., China, and Europe, which rekindled economic recovery hopes and kept market trading sentiment positive. Moreover, the political uncertainty in the U.S. also weighs on the already weaker U.S. dollar, which adds further burden around the currency pair.

Despite the intensified Sino-US tussle and coronavirus (COVID-19) woes, the market trading sentiment managed to stop its previous negative performance and started to gain some positive traction during the early Asian session on the day perhaps due to the upbeat activity numbers from the U.S., China, and Europe, which rekindled economic recovery hopes. Moreover, the market trading sentiment got an additional lift from the positive developments surrounding the Brexit talks between the U.K. and the European Union (E.U.), which in turn, provided an instant boost to the market trading sentiment and undermined the safe-haven assets including the safe-haven U.S. dollar.

Despite the upbeat U.S. data, the broad-based U.S. dollar remained depressed as the investors continue to sell U.S. dollars on the back of the upbeat market sentiment. Moreover, the losses in the U.S. dollar could also be associated with political uncertainty in the U.S. ahead of U.S. elections. However, the losses in the U.S. dollar could be considered as the major factor that kept the currency pair under pressure. Meanwhile, the U.S. Dollar Index that tracks the greenback against a bucket of other currencies dropped to 93.977 to 93.705.


Technically, the USD/CHF pair has entered the overbought zone at the 0.9204 level and below this, the market has initiated the retracement/correction in the USD/CHF pair. Therefore, we have opened a sell trade below 0.9200 area to target quick 40 pips—checkout out a trading plan below. 

Entry Price – Sell 0.91809

Stop Loss – 0.92209

Take Profit – 0.91409

Risk to Reward – 1:1

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$40/ +$40

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

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Forex Signals

USD/CHF Continues to Drip Amid Weaker Dollar – Quick Update on Signal

During Friday’s European trading hours, the USD/JPY currency pair failed to stop its previous session bearish moves and took further offers below mid- the 0.9000 level. However, the reason for the bearish tone around the currency pair could be associated with the broad-based U.S. dollar weakness, triggered by the risk-on market mood, which tends to undermine the safe-haven U.S. dollar. Hence, the upbeat market sentiment, supported by optimism over a potential vaccine/treatment for the highly infectious coronavirus.

During Friday’s European trading hours, the USD/JPY currency pair failed to stop its previous session bearish moves and took further offers below mid- the 0.9000 level. However, the reason for the bearish tone around the currency pair could be associated with the broad-based U.S. dollar weakness, triggered by the risk-on market mood, which tends to undermine the safe-haven U.S. dollar. Hence, the upbeat market sentiment, supported by optimism over a potential vaccine/treatment for the highly infectious coronavirus.

During Friday’s European trading hours, the USD/JPY currency pair failed to stop its previous session bearish moves and took further offers below mid- the 0.9000 level. However, the reason for the bearish tone around the currency pair could be associated with the broad-based U.S. dollar weakness, triggered by the risk-on market mood, which tends to undermine the safe-haven U.S. dollar. Hence, the upbeat market sentiment, supported by optimism over a potential vaccine/treatment for the highly infectious coronavirus.

On the contrary, the positive tone around the equity market also weakened the safe-haven Swiss franc and became the factor that cap further downside momentum for the USD/CHF currency pair. Currently, the USD/CHF currency pair is currently trading at 0.90430.9043 and consolidating in the range between 0.9040 – 0.9095.

While discussing the positive side of the story, the renewed optimism over a possible vaccine for the highly infectious coronavirus disease boosted the market risk tone. However, the hopes of the vaccine were boosted after Gilead Sciences received US FDA approval for its antiviral therapy to treat the highly contagious coronavirus disease. Elsewhere, the reasons for the risk-on market trading sentiment could also be attributed to rising expectations of further U.S. stimulus package. These hopes were fueled after the positive remarks of President Donald Trump and House of Representatives Speaker Nancy Pelosi, which eventually raised hopes for the measures to be passed before the election. Thus, the risk-on market mood tends to undermine the safe-haven Swiss franc, which becomes the key factor that lends some support to the currency pair to ease the intraday bearish pressure surrounding the USD/CHF pair.

As a result of the upbeat market sentiment, the broad-based U.S. dollar failed to gain any positive traction on the day. Apart from this, the U.S. dollar losses could also be associated with the increasing expectations of a strong Democratic victory in the U.S. elections, which tend to undermine the greenback. However, the U.S. dollar losses became the key factor that kept the currency pair under pressure. Simultaneously, the U.S. Dollar Index that tracks the greenback against a basket of other currencies dropped to 92.757.

Across the ocean, the equity market’s optimism was rather unaffected by the intensified US-China tussle and Brexit concerns. At the US-China front, the U.S. Secretary of State Michael Pompeo designated 6-more Chinese publications as “foreign missions”, or media outlets controlled by Beijing, at a Wednesday briefing. These headlines have little to no impact on the CHF markets.

Looking forward, the market traders will keep their eyes on the USD moves amid the lack of major data/events on the day. However, the final presidential debate between President Donald Trump and his Democratic rival Joe Biden. will be key to watch. Furthermore, the risk catalyst like geopolitics and the virus woes, not to forget the Brexit, could not lose their importance.


Daily Support and Resistance

S1 0.9016
S2 0.9042
S3 0.9058
Pivot Point 0.9069
R1 0.9085
R2 0.9096
R3 0.9123

Entry Price – Sell 0.90606
Stop Loss – 0.91006
Take Profit – 0.90206
Risk to Reward – 1:1
Profit & Loss Per Standard Lot = -$400/ +$400
Profit & Loss Per Micro Lot = -$40/ +$40
Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.
iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368
Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

Categories
Forex Signals

USD/CHF Downward Channel in Play – Quick Update on Signal!

The USD/CHF extended its previous session losing streak and hit the intra-day low around the 0.9130 regions in the last hours. However, the reason for the currency pair prevalent bearish bias could be attributed to the risk-off market sentiment, which underpins the safe-haven Swiss Franc and contributes drive selling in the pair. Hence, the market trading bias was being pressured by the fears of the steep rise in new coronavirus infections in Europe and the U.S.

The USD/CHF extended its previous session losing streak and hit the intra-day low around the 0.9130 regions in the last hours. However, the reason for the currency pair prevalent bearish bias could be attributed to the risk-off market sentiment, which underpins the safe-haven Swiss Franc and contributes drive selling in the pair. Hence, the market trading bias was being pressured by the fears of the steep rise in new coronavirus infections in Europe and the U.S.

The USD/CHF extended its previous session losing streak and hit the intra-day low around the 0.9130 regions in the last hours. However, the reason for the currency pair prevalent bearish bias could be attributed to the risk-off market sentiment, which underpins the safe-haven Swiss Franc and contributes drive selling in the pair. Hence, the market trading bias was being pressured by the fears of the steep rise in new coronavirus infections in Europe and the U.S.

Moreover, the risk-off market sentiment was further bolstered by the prevalent impasse over the next round of the U.S. fiscal stimulus measures, which further pessimism around the currency pair. On the flip side, the broad-based U.S. dollar weakness, triggered by doubts over the U.S. economic recovery, also played its major role in undermining the currency pair. At this particular time, the USD/CHF currency pair is currently trading at 0.9134 and consolidating in the range between 0.9130 – 0.9164.

The market risk tone has been shaky since the day started, possibly due to the worsening coronavirus (COVID-19) conditions in the U.K., Europe, and the U.S., which keeps fueling the worries over the global economic recovery. Meanwhile, the renewed conflict between the U.S. and China and the China-Australia tussle also exerted downside pressure on the market risk-tone and underpinned the safe-haven Swiss franc. As per the latest report, the daily new cases increased past Thursday’s record level of 6,638, with 7,334 new infections leading to 348,557 total numbers. The death toll seems to ease from the previous day’s 33 to 24 while marking a total of 9,734 deaths. As in result, the investors remained cautious that the rise in new coronavirus cases could lead to renewed lockdown measures.

Apart from this, the U.S. policymakers’ inability to offer the much-awaited COVID-19 stimulus also played its major role in weakening the market trading sentiment, which exerted some additional pressure on the market trading sentiment. At the US-China front, the renewed concerns over worsening diplomatic tensions between the world’s two largest economies also exerted downside pressure on the market trading sn time, which keeps the USD/CHF currency pair under pressure. Check out the trading plan below…


Daily Support and Resistance

S1 0.9083
S2 0.9113
S3 0.9128
Pivot Point 0.9142
R1 0.9158
R2 0.9172
R3 0.9201

Entry Price – Sell 0.91405
Stop Loss – 0.91805
Take Profit – 0.91005
Risk to Reward – 1:1
Profit & Loss Per Standard Lot = -$400/ +$400
Profit & Loss Per Micro Lot = -$40/ +$40
Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.
iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368
Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

Categories
Forex Signals

USD/CHF Trades Bearish Downward – Weaker Dollar in Play! 

During the Wednesday’s Asian trading hours, the USD/JPY currency pair failed to stop its previous sessU.S.n bearish trend and took further offers below the 0.9170 level. However, the reason for the bearish tone around the currency pair could be associated with the broad-based U.S. dollar weakness, triggered by the renewed concerns about the already shaky U.S. economic recovery. 

During the Wednesday’s Asian trading hours, the USD/JPY currency pair failed to stop its previous sessU.S.n bearish trend and took further offers below the 0.9170 level. However, the reason for the bearish tone around the currency pair could be associated with the broad-based U.S. dollar weakness, triggered by the renewed concerns about the already shaky U.S. economic recovery. 

During the Wednesday’s Asian trading hours, the USD/JPY currency pair failed to stop its previous sessU.S.n bearish trend and took further offers below the 0.9170 level. However, the reason for the bearish tone around the currency pair could be associated with the broad-based U.S. dollar weakness, triggered by the renewed concerns about the already shaky U.S. economic recovery. 

Apart from this, the upbeat market sentiment also undermined safe-havU.S. U.S. dollar and contributed to the currency pair losses. On the contrary, the U.S. positive tone around the equity market undermined the safe-haven Swiss franc, which becomes the fU.S.tor that helps the USD/CHF currency pair limit its deeper losses. Currently, the USD/CHF currency pair is currently trading at 0.9168 and consolidating in the range between 0.9160 – 0.9186.

The market trading sentiment remained supported by reports suggesting that the U.S. President Trump showed a willingness to pass $25 billion for Airline Payroll Support and $135 billion for small businesses for the Paycheck Protection Program. The U.S. positive data provided a fresh boost to the market’s risk sentiment and trimmed the U.S. dollar’s safe-haven bids.

However, the optimism around the equity market was unaffected by U.S. President Donald Trump’s decision to cancel the talks with Democrats on theU.S.conomic stimulus package to boost the coronavirus-hit economy. It is worth recalling that the theU.S. President Donald Trump canceled talks with Democrats over the stimulus package, which raised doubts about the U.S. economic recovery. This, in turn, led in no small fallU.S.n the U.S. equity markets on Tuesday, but the reaction turned out to be short-lived.

As a result of the upbeat markeU.S.sentiment, the broad-based U.S. dollar failed to gain any positiU.S. traction during the European trading session. Besides, the losses could be associated with the renewed concerns about the already shakyU.S.S economic recovery, which also undermine the broad-based U.S. dollar. However, the U.S. dollar losses became the key factor that kept the currency pair under pressure. U.S.ereas, the U.S. Dollar Index, which tracks the greenback U.S.ainst a basket of six other currenciU.S., was up 0.1% at 93.737.

Looking forward, the market traders keeping their eyes on theU.S. Chair Jerome Powell’s scheduled speech. In the meantime, the updates surrounding the fresh Sino-US tussle, as well as the coronavirus (COVID-19), could not lose their importance.


Daily Support and Resistance

S1 0.9127

S2 0.9164

S3 0.9185

Pivot Point 0.9202

R1 0.9222

R2 0.9239

R3 0.9277

The USD/CHF pair is trading with a bearish bias at 0.9165 level, forming a downward channel on the 4-hour timeframe. On the lower side, the bearish trend continuation is likely to drive the selling trend until the 0.9140 support level. At the same time, the MACD is also forming smaller histograms than before, suggesting selling bias in the market. Here’s a quick trade plan… 

Entry Price – Sell 0.91736

Stop Loss – 0.92136

Take Profit – 0.91336

Risk to Reward – 1:1

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$40/ +$40

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

Categories
Forex Signals

USD/CHF Extended Previous Session Losing Streak – Signal Update! 

During Tuesday’s early European trading session, the USD/CHF currency pair failed to stop its Asian session bearish bias and dropped further near 0.9223 level, mainly due to the broad-based U.S. dollar selling bias, triggered by the cautious mood of traders ahead of the U.S. presidential debate. Moreover, the upbeat market sentiment, backed by the positive coronavirus (COVID-19) vaccine news, also weighed on the safe-haven U.S. dollar, which keeps the currency pair under pressure. Currently, the USD/JPY currency pair is currently trading at 0.9224 and consolidating in the range between 0.9222 – 0.9252.

During Tuesday’s early European trading session, the USD/CHF currency pair failed to stop its Asian session bearish bias and dropped further near 0.9223 level, mainly due to the broad-based U.S. dollar selling bias, triggered by the cautious mood of traders ahead of the U.S. presidential debate. Moreover, the upbeat market sentiment, backed by the positive coronavirus (COVID-19) vaccine news, also weighed on the safe-haven U.S. dollar, which keeps the currency pair under pressure. Currently, the USD/JPY currency pair is currently trading at 0.9224 and consolidating in the range between 0.9222 – 0.9252.

During Tuesday’s early European trading session, the USD/CHF currency pair failed to stop its Asian session bearish bias and dropped further near 0.9223 level, mainly due to the broad-based U.S. dollar selling bias, triggered by the cautious mood of traders ahead of the U.S. presidential debate. Moreover, the upbeat market sentiment, backed by the positive coronavirus (COVID-19) vaccine news, also weighed on the safe-haven U.S. dollar, which keeps the currency pair under pressure. Currently, the USD/JPY currency pair is currently trading at 0.9224 and consolidating in the range between 0.9222 – 0.9252.

However, the market trading sentiment extended its Monday’s upbeat performance and continue to flash d green during the European session on the day. The market was being supported by the risk-positive headlines from America and the European Union (E.U.). Moreover, the coronavirus (COVID-19) vaccine’s hopes also kept the bulls hopeful on the day. It is worth mentioning that the U.S. pharmaceutical giant Johnson and Johnson Inc COVID-19 vaccine trials earlier showed a robust immune response to the coronavirus with a single dose in the early trial stages. This, in turn, boosted market trading sentiment and dragged the currency pair down by undermining the safe-haven U.S. dollar.

On the other hand, the U.S. Democrats showed a willingness to alter previous proposals, while saying that the deadlock over the much-awaited stimulus talks seems to break anytime. Meanwhile, the U.S. House Speaker Nancy Pelosi recently said that we have made critical additions and reduce the bill’s cost by shortening the time covered for now. This eventually boosted the hopes of the much-awaited coronavirus (COVID-19) stimulus package, which keeps the market trading sentiment positive and helps the currency pair limit its deeper losses by undermining the safe-haven Swiss Franc.


Despite the hopes of further stimulus., the broad-based U.S. dollar still flashing red during the European session amid market risk-on sentiment. On the other hand, traders’ cautious mood ahead of Tuesday’s U.S. presidential election debate between President Donald Trump and Democratic candidate Joe Biden also weighed on the U.S. dollar. Although, the gains in the U.S. dollar keep the currency pair down. Looking ahead, the market traders will keep their focus on headlines concerning Brexit, pandemic, and the U.S. Presidential Election, which may offer important clues. It’s worth mentioning that the 1st-round of the U.S. President Election debate is expected to use American President Donald Trump’s tax payments as a fresh obstacle, which may push the U.S. dollar down. 

Daily Support and Resistance

S1 0.9038

S2 0.9109

S3 0.9154

Pivot Point 0.9181

R1 0.9225

R2 0.9252

R3 0.9323

The USD/CHF pair entered the overbought zone during the Asian session but soon started forming a bearish setup below a strong resistance level of 0.9295 level. The closing of the candle below 0.9295 level has driven strong selling until the 0.0222 level. An upward trendline is likely to support the USD/CHF pair at 0.9211 level, and if it closes over 0.9211 level, we may have a bullish reversal. Check out a trading plan below…

Entry Price – Sell 0.92306

Stop Loss – 0.92706

Take Profit – 0.91906

Risk to Reward – 1:1

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$40/ +$40

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

Categories
Forex Signals

USD/CHF Erased Its Previous Session Losses – An Update on Signal! 

During the Friday’s European trading hours, the USD/CHF currency pair stopped its early-day bearish rally and drew some fresh bids around above 0.9100 level despite the cautious mood around the equity markets. Besides this, the prevalent selling bias surrounding the U.S. dollar also failed to drag the currency pair down. Hence, the broad-based U.S. dollar came under pressure instantly after the Thursday’s rather unimpressive U.S. economic data. 

During the Friday’s European trading hours, the USD/CHF currency pair stopped its early-day bearish rally and drew some fresh bids around above 0.9100 level despite the cautious mood around the equity markets. Besides this, the prevalent selling bias surrounding the U.S. dollar also failed to drag the currency pair down. Hence, the broad-based U.S. dollar came under pressure instantly after the Thursday’s rather unimpressive U.S. economic data. 

During the Friday’s European trading hours, the USD/CHF currency pair stopped its early-day bearish rally and drew some fresh bids around above 0.9100 level despite the cautious mood around the equity markets. Besides this, the prevalent selling bias surrounding the U.S. dollar also failed to drag the currency pair down. Hence, the broad-based U.S. dollar came under pressure instantly after the Thursday’s rather unimpressive U.S. economic data. 

Apart from this, the U.S. dollar losses were further bolstered by the fresh fall in U.S. tech stocks on Thursday, which tends to drag the currency pair down. Across the pond, the risk barometer tracks Wall Street’s mild losses to print a three-day losing streak, which in turn, underpinned the safe-haven Swiss Franc and becomes the key factor that kept the lid on any further gains in the currency pair. 

Currently, the USD/CHF currency pair is currently trading at 0.9099 and consolidating in the range between 0.9075 – 0.9100. The faith over the coronavirus (COVID-19) vaccine/treatment was dominated by concerns about the second wave of coronavirus infections, which fading optimism over a sharp V-shaped global economic recovery. Besides this, the U.S. Federal Reserve’s (Fed) another stress test for large banks and a lack of major data/events also keeps the market trading sentiment under pressure. Whereas, the U.K. scientist group’s readiness for a state lockdown of almost two weeks and Global Times’ direct war signals to the U.S., over American diplomat’s visit to Taiwan, also exerted downside pressure on the equity market, which tend to underpin the safe-haven Swiss Franc.

Despite the risk-off market sentiment, the broad-based U.S. dollar failed to gain any positive traction and edged lower on the day as doubts persist over the global economic recovery from COVID-19. The disappointing U.S. employment data witnessed that. Apart from this, another rout in U.S. tech stocks also undermined the U.S. dollar. However, the losses in the U.S. dollar becomes the key factor that kept the lid on any further gains in the currency pair. Whereas, the U.S. Dollar Index, which tracks the greenback against a bucket of other currencies, dropped by 0.05% to 92.927 by 12:48 AM ET (5:48 AM GMT).

Looking forward, the market traders will keep their eyes on the USD moves amid the lack of major data/events on the day. However, the U.S. Michigan Consumer Sentiment Index for September, which is expected 75 versus 74.1 prior, will likely help resolve near-term USD moves. Furthermore, the risk catalyst like geopolitics and the virus woes, not to forget the Brexit, will also be key to watch for the fresh direction.


The USD/CHF is trading at 0.9104, holding right below a strong resistance level of 0.91130. Closing of candles over the support level of 0.9077 level can trigger buying trades in the USD/CHF pair. The series of EMAs is also supporting buying trends; therefore, we may look for bullish trades on the USD/CHF pair. Check out the forex trading signal below…

Entry Price – Buy 0.90932

Stop Loss – 0.90532

Take Profit – 0.91332

Risk to Reward – 1:1

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$40/ +$40

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

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Forex Signals

USD/CHF Depressed Near 1-1/2-Week Lows Below 0.9100 – Signal Update 

During the Friday’s Asian trading hours, the USD/JPY currency pair failed to stop its previous day declining streak and took further offers below the 0.9100 level. Let me remind you, the currency pair extended this week’s rejection slide from the 0.9200 round-figure marks and saw some follow-through selling for the third-straight session on Friday. However, the reason for the bearish tone around the currency pair could be associated with the broad-based U.S. dollar weakness, triggered after the U.S. markets witnessed yet another stock selloff overnight. Apart from this, the upbeat market sentiment, supported by optimism over a potential vaccine/treatment for the highly infectious coronavirus, also undermined the safe-haven U.S. dollar and contributed to the currency pair gains. 

During the Friday’s Asian trading hours, the USD/JPY currency pair failed to stop its previous day declining streak and took further offers below the 0.9100 level. Let me remind you, the currency pair extended this week’s rejection slide from the 0.9200 round-figure marks and saw some follow-through selling for the third-straight session on Friday. However, the reason for the bearish tone around the currency pair could be associated with the broad-based U.S. dollar weakness, triggered after the U.S. markets witnessed yet another stock selloff overnight. Apart from this, the upbeat market sentiment, supported by optimism over a potential vaccine/treatment for the highly infectious coronavirus, also undermined the safe-haven U.S. dollar and contributed to the currency pair gains. 

During the Friday’s Asian trading hours, the USD/JPY currency pair failed to stop its previous day declining streak and took further offers below the 0.9100 level. Let me remind you, the currency pair extended this week’s rejection slide from the 0.9200 round-figure marks and saw some follow-through selling for the third-straight session on Friday. However, the reason for the bearish tone around the currency pair could be associated with the broad-based U.S. dollar weakness, triggered after the U.S. markets witnessed yet another stock selloff overnight. Apart from this, the upbeat market sentiment, supported by optimism over a potential vaccine/treatment for the highly infectious coronavirus, also undermined the safe-haven U.S. dollar and contributed to the currency pair gains. 

On the contrary, the positive tone around the equity market also undermined the safe-haven Swiss franc. It became the factor that cap further downside momentum for the USD/CHF currency pair. Currently, the USD/CHF currency pair is currently trading at 0.9098 and consolidating in the range between 0.9080 – 0.9110.

It is worth mentioning that the broad-based U.S. dollar remained bearish through the first half of the trading action amid strong buying around the single currency, which remained supported by the report that ECB officials are growing more optimistic over the Eurozone economic outlook. Furthermore, the stronger tone surrounding the global equity markets also undermined the safe-haven U.S. dollar.

The market trading sentiment remained supported by the Indian and Chinese military group’s joint statement to ease the border tension. Besides this, the positive headlines over the receding coronavirus (COVID-19) led activity restrictions in Tokyo, and the record recovery in the BSI Large Manufacturing Conditions Index for the 3rd-quarter (Q3) also exerted a positive impact on the market sentiment. In the meantime, the optimism over the coronavirus (COVID-19) vaccine/treatment led by the positive comment from the Goldman Sachs that Pfizer’s candidate vaccine could be approved as early as October, boosted the risk sentiment. 

On the contrary, the positive around the equity markets also weakened the demand of safe-haven Swiss franc, which becomes the factor that caps further downside momentum for the USD/CHF currency pair.

The losses could be associated with the euro’s bullish momentum, led by the European Central Bank’s latest policy announcement. However, the U.S. dollar losses became the key factor that kept the currency pair under pressure. Across the ocean, the equity market’s optimism was unaffected by the intensified US-China tussle and Brexit concerns. At the US-China front, the Trump administration continues to keep TikTok on the sellers’ radar. In the meantime, the cancellation of over 1,000 visas of Chinese residents also irritates China. 

Moving on, the market traders will keep their eyes on the U.S. Consumer Price Index (CPI) for August, which is expected 1.2% against 1.0% YoY. Moreover, the updates surrounding the Sino-US tussle and Brexit-related headline could not lose their importance.


On the technical front, the USD/CHF is trading with a bearish bias at 0.9091 level, facing immediate resistance at 0.9108 level. On the lower side, the USD/CHF may drop until the support level of 0.9055 level. The MACD and 50 EMA are in support of selling bias today. Check out the trade plan below: 

Entry Price – Sell 0.90897

Stop Loss – 0.91297

Take Profit – 0.90497

Risk to Reward – 1:1

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$40/ +$40

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

 

Categories
Forex Signals

USD/CHF Hit The Multi-Year Lows Near 0.9037 – Update on Signal! 

During Tuesday’s European trading session, the USD/CHF currency pair failed to stop its previous session bearish moves and dropped to fresh multi-years low just around the 0.9035, mainly due to the broad-based U.S. dollar weakness. That was triggered by the disappointing U.S. economic data and worries that the second wave of COVID-19 cases in the United States could ruin the recovery in the world’s biggest economy. 

During Tuesday’s European trading session, the USD/CHF currency pair failed to stop its previous session bearish moves and dropped to fresh multi-years low just around the 0.9035, mainly due to the broad-based U.S. dollar weakness. That was triggered by the disappointing U.S. economic data and worries that the second wave of COVID-19 cases in the United States could ruin the recovery in the world’s biggest economy. 

During Tuesday’s European trading session, the USD/CHF currency pair failed to stop its previous session bearish moves and dropped to fresh multi-years low just around the 0.9035, mainly due to the broad-based U.S. dollar weakness. That was triggered by the disappointing U.S. economic data and worries that the second wave of COVID-19 cases in the United States could ruin the recovery in the world’s biggest economy. 

The on-going doubts over the U.S. Stimulus Package also weighed on the American currency and contributed to the pair losses. On the other hand, the concerns about strengthening the US-China tussle weighed on the market trading sentiment, which supported the safe-haven Swiss francs and contributed to the USD/CHF pair’s declines the lowest level since January 2015. At this particular time, the USD/CHF currency pair is currently trading at 0.9052 and consolidating in the range between 0.9037 – 0.9069.

Due to the pretending reduction in coronavirus cases by decreasing testing, the worries about the U.S. economic recovery still hover all over the market and keep the U.S. dollar bulls defensive. Apart from the U.S., the coronavirus cases in Europe also increasing day by day. As per the latest report, the reported number of coronavirus cases increased to 225,404 with a total of 9,236 deaths so far. Whereas, the cases increased by 1,390 in Germany on the day against the previous day +738. At the same time, the death losses rose by 4, according to the report of German disease and epidemic control center, Robert Koch Institute (RKI). This, in turn, benefitted the Swiss franc’s safe-haven currency and contributed the pair losses.

Elsewhere, the risk-off market sentiment was further bolstered by the long-lasting disappointment over the lack of progress in the much-awaited fiscal package. As well as, the on-going tussle between the United States and China became sourer after the suspension in the bi-deal annual trade review with China. It is worth reporting that the Trump administration keeps increasing the hardships for China’s companies by imposing punitive measures on Chinese 38 facilities from Huawei, which exerted a very downside impact on the market and overshadowed optimism over a potential vaccine for the highly infectious coronavirus infections.

As a result, the broad-based U.S. dollar failed to gain any positive traction on the day and reported losses as the U.S. Congress’s inability to reach an agreement for the U.S. latest COVID-19 stimulus package kept the investors defensive. However, the losses in the U.S. dollar kept the USD/CHF currency pair bearish. Whereas, the U.S. Dollar Index that tracks the greenback against a basket of other currencies was down 0.22% to 92.642 by 12:21 AM ET (5:21 AM GMT).

The market players will closely follow the release of the Building Permits and Housing Starts. However, this data usually does not leave any major impact on the currency pair. At the important front, the release of the latest FOMC meeting minutes will be key to watch.


The USD/CHF has violated the triple bottom support level of 0.9064 and the closing of candles below this is supporting the solid potential for further bearish bias. Therefore, we are looking to target 40 pips until 0.8990 to take a profit level.

Entry Price – Sell 0.9049
Stop Loss – 0.9099
Take Profit – 0.8999
Risk to Reward – 1:1
Profit & Loss Per Standard Lot = -$400/ +$400
Profit & Loss Per Micro Lot = -$40/ +$40

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

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Forex Signals

USD/CHF Breaks Below Triple Bottom Level – Signal Update!

The USD/CHF remains bearish on Thursday as the downside seems solid, especially upon the breakout of 0.9372 support level. On the lower side, the USD/CHF has the potential to go after 0.9236 level. The demand for Swiss Francs has increased in the wake of safe-haven appeal as the CHF is also considered a safe-haven asset.

The USD/CHF remains bearish on Thursday as the downside seems solid, especially upon the breakout of 0.9372 support level. On the lower side, the USD/CHF has the potential to go after 0.9236 level. The demand for Swiss Francs has increased in the wake of safe-haven appeal as the CHF is also considered a safe-haven asset.

The USD/CHF remains bearish on Thursday as the downside seems solid, especially upon the breakout of 0.9372 support level. On the lower side, the USD/CHF has the potential to go after 0.9236 level. The demand for Swiss Francs has increased in the wake of safe-haven appeal as the CHF is also considered a safe-haven asset.

Tensions between the world’s two largest economies escalated further after the US unexpectedly ordered China to close its consulate office in Houston within 72 hours due to the allegations of interference. In return, China quickly responded and threatened to retaliate with firm countermeasures, which eventually fueled the fears that the on-going conflict could harm the US-China trade deal. Apart from this, US President Donald Trump also decided to use additional measures against the Asian major while imposing a ban on travel to the United States by the 92 million members of China’s ruling Communist Party. This action could invite retaliation against American travel and residency in China. However, the news from Axios also suggested an escalation in the tussle citing the Federal Bureau of Investigation (FBI).

The on-going doubt over the next round of the US fiscal stimulus measures also challenged the risk-on market sentiment. The Republican-majority Senate has been mainly ignoring a $3 trillion relief bill, which was already passed by the Democrat-majority House of Representatives two months ago. The US Treasury Secretary Steve Mnuchin’s initial signal that the US policymakers will be ready to deliver aid package by the end of July got dimmed after the government cited the need for intermediate extension of the unemployment insurance benefits.


Technically, we can capture a selling trade in USD/CHF, especially below 0.9372 level. On the lower side, the USD/CHF can go after 0.9236 level. The 50 periods EMA is supporting bearish bias in USD/CHF pair along with the three black crows pattern, which may lead the USD/CHF pair lower towards 0.9236. Here’s a quick trade plan…

Entry Price – Sell 0.928

Stop Loss – 0.932

Take Profit – 0.924

Risk to Reward – 1

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$40/ +$40

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

Categories
Forex Signals

Increased Safe Haven Appeal Weighs on USD/CHF – Quick Update on Signal! 

The USD/CHF pair seems to be trading sideways within a narrow trading range of 0.9520 – 0.9510 aimed at increased risk sentiment. The reason for the soured risk sentiment could be attributed to the statement that the Dragon Nation recently imposed strict measures on air travel to stop outbreak 2.0 and planned to impose further lockdown restrictions as the new coronavirus cases rose above 557 far. 

The USD/CHF pair seems to be trading sideways within a narrow trading range of 0.9520 – 0.9510 aimed at increased risk sentiment. The reason for the soured risk sentiment could be attributed to the statement that the Dragon Nation recently imposed strict measures on air travel to stop outbreak 2.0 and planned to impose further lockdown restrictions as the new coronavirus cases rose above 557 far. 

The USD/CHF pair seems to be trading sideways within a narrow trading range of 0.9520 – 0.9510 aimed at increased risk sentiment. The reason for the soured risk sentiment could be attributed to the statement that the Dragon Nation recently imposed strict measures on air travel to stop outbreak 2.0 and planned to impose further lockdown restrictions as the new coronavirus cases rose above 557 far. 

On the other hand, Japan, the U.S., and Germany also reported fresh cases that eventually fueled the concerns of pandemic wave 2.0 and exerted some downside pressure on the risk sentiment and benefited the safe-haven Swiss Franc.

On the other hand, the Indian and China faced some critical crisis, and both parties suffered losses in the fight at a disputed Himalayan border area, which also exerted additional burden on the risk-off momentum. The tensions between the border of North Korea and South Korea also escalated and added to the risk-off market sentiment.

The broad-based U.S. dollar took bids on the day at the USD front, mainly after the U.S. retail sales rose more than expected from 7.9% in May to 17.7%. The U.S. dollar was further supported by the new risk-off market sentiment triggered by the intensified odds of pandemic wave 2.0. However, the U.S. dollar strength provided some support to the USD/JPY pair to recover its early-day losses. The market traders will keep their eyes on the release of the U.S. housing market data, Building Permits, and using Starts. As well as, the Fed Chair Jerome Powell’s second day of testimony will be key to watch, which might influence the USD price dynamics and produce some meaningful trading opportunities around the USD/CHF pair.


The USD/CHF is facing an immediate resistance of around 0.9520 level, and closing of recent Doji candle below 0.9520 suggests the chances of selling in the pair. On the higher side, resistance is likely to be found around 0.9640 level; however, the downward trendline is placing a bearish pressure on the USD/CHF pair today. Let’s consider selling below 0.94861 today. 

 

Entry Price – Sell 0.94861    

Stop Loss – 0.95261    

Take Profit – 0.94461

Risk to Reward – 1

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$40/ +$40

Categories
Forex Signals

USD/CHF Ascending Triangle Drives Price Action -Who’s Up for Signal?

During the U.S. session, the USD/CHF pair is exhibiting some dramatic bullish movement as it’s prices are trading at 0.9745. What’s more surprising is, the U.S. unemployment claims figures are even worse than economists had expected, despite this, the U.S. dollar is gaining bullish momentum.

During the U.S. session, the USD/CHF pair is exhibiting some dramatic bullish movement as it’s prices are trading at 0.9745. What’s more surprising is, the U.S. unemployment claims figures are even worse than economists had expected, despite this, the U.S. dollar is gaining bullish momentum.

During the U.S. session, the USD/CHF pair is exhibiting some dramatic bullish movement as it’s prices are trading at 0.9745. What’s more surprising is, the U.S. unemployment claims figures are even worse than economists had expected, despite this, the U.S. dollar is gaining bullish momentum.

According to the U.S. labor market report, the week ending March 28, the advance numbers for initial jobless claims surged dramatically to 6,648,000, exhibiting an increase of 3,341,000 from the previous week’s updated level. This signifies the highest level of seasonally adjusted initial jobless claims in history. The prior week’s level was updated up by 24,000 from 3,283,000 to 3,307,000.

Since most of the data was already expected, considering the increased number of COVID 19 cases in the United States due to which the U.S. and people of other countries around the globe are locked down at homes. Despite this number, the U.S. dollar is making a bullish move, perhaps, it’s the technical analysis which is driving the buying trend in the USD/CHF. 


On the 4 hour timeframe, the USD/CHF prices are holding around 0.9772, and bullish breakout of this level can extend buying until the next target level of 0.9856. Below this level, we can expect selling in the pair; in fact, I will try to capture the selling once the market reaches 0.9856. On the lower side, immediate support stays around 0.9606.

Entry Price: Buy at 0.97385

Take Profit 0.98185

Stop Loss 0.96585

Risk/Reward 1

Profit & Loss Per Standard Lot = -$800/ +$800

Profit & Loss Per Micro Lot = -$80/ +$80 

Categories
Forex Assets

USD/CHF Currency Pair – Everything You Should Know!

Introduction

Introduction

Introduction

USD/CHF is the abbreviation for the US dollar and the Swiss franc. This pair is a major currency pair. USD is the base currency, while CHF is the quote currency. The pair as a whole tells how many units of the quote currency is needed to purchase one unit of the base currency. Trading USDCHF is as good as saying, trading the ‘Swissie.’

Understanding USD/CHF

The exchange value of USDCHF represents the number of Swiss francs required to buy one US dollar. For example, if the value of USDCHF is 0.9820, to purchase one USD, the trader must pay 0.9820 Swiss francs.

USD/CHF Specification

Spread

Spread in trading is the difference between the bid price and the ask price offered by the broker. It is measured in terms of pips and varies on the type of account and type of broker.

Spread on ECN: 0.8

Spread on STP: 1.6

Fees

There is a small fee or commission charged by the broker for every trade a trader takes. This depends on both types of accounts and broker. For our analysis, we have kept the fee fixed at one pip.

Slippage

Due to volatility in the market, a trader does not usually get the price that he demanded. The actual price differs from the demanded price. This difference is referred to as slippage. For example, if a trader executes a trade at 0.9890, the real price received would be 0.9892. This difference of two pips is known as slippage.

Trading Range in USD/CHF

The trading range is a tabular representation of the minimum, average, and maximum pip movement on a particular timeframe. Having knowledge about this is necessary because it helps in managing risk as well as determining the right times of the day to enter and exit a trade with minimal costs.

Below is a table that depicts the minimum, average, and maximum volatility (pip movement) on different timeframes.

USD/CHF PIP RANGES

Procedure to assess Pip Ranges

  1. Add the ATR indicator to your chart
  2. Set the period to 1
  3. Add a 200-period SMA to this indicator
  4. Shrink the chart so you can assess a large time period
  5. Select your desired timeframe
  6. Measure the floor level and set this value as the min
  7. Measure the level of the 200-period SMA and set this as the average
  8. Measure the peak levels and set this as Max.

USD/CHF Cost as a Percent of the Trading Range

The number of pips the currency pair move in each timeframe is shown in the above table. Now, we apply these values to find the cost percentage when the volatility is minimum, average, and max. This cost percentage will then help us filter out the most optimal time of the day to take trades.

The comprehension of the cost percentage is simple. If the percentage is high, then the cost is high for that particular timeframe and range. If the percentage is low, then the cost is relatively low for that timeframe and range.

Note that, the total cost on a single trade is calculated by adding up the spread, slippage, and trading fee.

ECN Model Account

Spread = 0.8 | Slippage = 2 | Trading fee = 1

Total cost = Slippage + Spread + Trading Fee = 2 + 0.8 + 1 = 3.8

STP Model Account

Spread = 1.6 | Slippage = 2 | Trading fee = 0

Total cost = Slippage + Spread + Trading Fee = 2 + 1.6 + 0 = 3.6

The Ideal way to trade the USD/CAD

Entering and exiting trades during any time of the day might not be the smartest move. There are particular times of the day a trader must manage their trade to reduce both risk and cost on the trade. This can be made possible by comprehending the above two tables.

The percentages are highest in the min column. Meaning, the cost is pretty high when the volatility of the market is low. For example, on the 1H timeframe, when the volatility is 2.5 pips, the cost percentage is 152%. This means that one must bear high costs if they open or close trades when the volatility is around 2.5 pips. So, ideally, it is recommended to trade when the market volatility is above the average mark.

Apart from that, it is much better if one trades using the limit orders rather than market orders, as it nullifies the slippage on the trade. In doing so, the costs of each trade will reduce by about 50%.

Categories
Forex Market Analysis

Market outlook update: The euro under some selling pressure

News Events

The Swiss Franc is within striking distance of what was once one of the most heavily defended boundaries in global markets. Policy makers may start to think about an eventual normalization to sustain its price.

The euro came under some selling pressure after a report showing that German economic sentiment deteriorated sharply again in April amid concerns over heightened international trade tensions.

On other hand, Great Britain average earnings index  came at 2.8% despite a forecast of 3.0%

Analysts say that today’s economic data could lead to an increased investor uncertainty because the Bank of England had already said that a rise in wage pressures would need to be seen before a rate hike is factored in as a tool to curb inflation.

 

USD/CHF

On the daily chart, the price returned to its bullish rally today as it hits an important resistance area at 0.9645

It has reached demand zone (0.9645-0.971)

We can observe that price reached, also, the downward trend line from the high of November 2017, and the upper edge of the rising channel

If the price could jump further, it may reach 0.9785 & 0.9845

 

GBP/USD

On the daily chart, the price had done a big effort to reach a pivotal level at 1.4335

Until now there’s a special price action with a hammer, by forming a descending wedge

If a retracement is confirmed, then it might be a correction to 1.409 on its way

EUR/USD

On the daily chart, the price has respected the zone, which is located at the broken up channel from the low October 2017, and the downward trend line from the high of 2008

A perfect hammer is on its way to being confirmed, to open the gate to retest the 1.2155-1.209 levels again

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