USD/CHF aims at parity

Source: Dukascopy Bank SA


Since the review done on April 4, the USD/CHF has jumped 7.50% or almost 700 base points. In general, the support of the long term trend line was enough for a surge to start, which eventually broke past the 2021 and 2022 high levels at 0.9475. By May 10, the pair had reached 2019 levels, as it approached the resistance zone that surrounds the 1.0000 mark. The zone around the parity level acted as resistance during the second half of 2019, as the US Dollar made attempts at surging above the CHF.

In the meantime, note that it was previously described and explained how the US Federal Reserve is starting to tighten policy and the Swiss National Bank wants to see its currency lower and is actively working on it. Namely, the supply for the USD was decreasing, as the CHF supply increases.

"On March 24, the Swiss National Bank issued its Monetary Policy Assessment and revealed Policy Rate. In general, monetary easing is set to continue, as the rate remains at -0.75%. Moreover, the bank has clearly stated that it is going to get involved in the Forex markets and will push the Swiss Franc down." See full Article.

"On Wednesday, March 16, the US Federal Reserve issued a monetary policy statement and hiked interest rates. The central bank hiked interest rates, as forecast by the markets by only 25 base points. In addition, the bank revealed that it would reduce its balance sheet at one of the upcoming meetings." See full Article.

In regards to the near term future, the rate is set to test the resistance of the zone, which surrounds the 1.0000 mark at 0.9985/1.0025. A move above the zone could encounter resistance in the historical high levels of 2018 and 2019. The historical levels have been marked on the chart.

However, take into account, that the US Dollar is heavily overbought. It is possible that a sideways or declining consolidation of gains occurs. A potential decline might look for support in the 0.9900 and 0.9800 levels, which have been observed as acting as short term resistance and support.
Back to articles

Actual Topics

Tue, 10 May 2022 13:09:02 GMT

USA30 index reaches new 2022 low level

The August and September high level at 35,500.00 provided enough resistance for a decline to start on April 20. Two days later, the index broke down and passed three previous support and resistance levels, before eventually reaching the June 2021 low level at 33,065.00. By May 10, the index had revealed a narrow channel down pattern and reached the

Fri, 06 May 2022 16:14:01 GMT

Germany 40 index reveals pattern

During April, the Germany 40 index has continued to decline from the resistance zone at 14,830.00/14,950.00. During the review conducted on May 6th, it was spotted that the stock index has been declining in a channel down pattern. Most recently, the stocks bounced off the upper trend line of the pattern and declined to once again look for support in

Subscribe to "Fundamental Analysis" feed

Subscribe
To learn more about Dukascopy Bank CFD / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
For further information regarding potential cooperation,
please call us or make callback request.
To learn more about Dukascopy Bank Binary Options / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
To learn more about Dukascopy Bank CFD / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
To learn more about Crypto Trading / CFD / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
To learn more about Business Introducer and other trading related information,
please call us or make callback request.
For further information regarding potential cooperation,
please call us or make callback request.