USDCHF → Retest of resistance area in new ↘︎ trend

8 thg 11, 2023

USDCHF has been very strongly tied behind DXY lately. The market is forming a correction following the index. The price is heading towards the resistance of the new price channel



The DXY has been stagnant lately amid uncertainty related to inflation and geopolitics. Powell is speaking again today, and at the same time the dollar index is testing the previously broken support line. If a false upside breakout is formed, we are standing just before a strong fall, it all depends on the news.
USDCHF is heading towards the local resistance formed by the descending channel. Since the market is in a phase of consolidation and uncertainty, this resistance may confirm a change of environment, in which case we are facing a strong decline. In any case, we need to wait for the test. The market is trying to change the trend direction, as we saw weak NFP data last week, and there are rumors that the Fed is increasingly discussing a possible easing of the policy, but we need facts.

Support levels: 0.8982, 0.8903
Resistance levels: trend resistance, 0.9090

The price may strengthen a little more, further, the development of the situation and scenario will depend on the sellers and the fundamentals. If the resistance holds the price, the market will give us a bearish downside signal towards 0.8900

Regards R. Linda!

14 thg 11, 2023

Ghi chú

Weak news for the dollar sends USDCHF down following DXY