Trading Forex and CFDs is risky
Read HotForex Daily Market Analysis

USDCHF finds a floor at 9700

Market Analysis

USDCHF, Daily                 

There appears to be some consolidation being to show in the anti-greenback sentiment. The first signs maybe appearing in one of the most violent of movers. The USDCHF peaked at 1.0098 on May 11 and sold off for eight consecutive trading days punching below 0.9700 to a low of 0.9691 (May 22) which represents a fall of over 4%. Although it may be too early to suggest a USD recovery, a stall in the fall is apparent.  A couple of factors are coming together; odds for a June Fed rate hike have improved over the past week, and are largely priced in, in addition, U.S. political handwringing has faded some, which may allow the dollar to regains some ground and finally the Trump tour seems to be going to plan and the gaffe’s many predicted have not occurred. (but its only Wednesday).

USDCHF– The long legged doji candle on Monday and the relief candle yesterday (May 22) was sufficient to prompt a LONG position on last nights close at 0.9760, target 1 is the 23.6 Fibonacci retracement level and 14 period DATR at 0.9842 with target 2 around the 20 day moving average and the 38.2 Fibonacci level at 0.9925.

The RSI is moving from over sold and remains weak at 35 but shows signs of recovery, the Parabolic SAR remains negative.  A breach and break of the fractal low at 0.9796 would negate this retrace move.

Click here to access the HotForex Economic calendar.

Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! The next webinar will start in:

Stuart Cowell

Senior Market Analyst

HotForex

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission