Fundamental Analysis of USDC/HF for March 2, 2018

USD/CHF has been quite impulsive with the bearish moves after bullish rejection off the 0.9450 price area recently. Despite mixed economic reports, CHF gained momentum over USD ahead of the anticipating rate hike this month. Recently, Fed Chairman Powell made a testimony and presented his outlook on the current economic conditions and monetary policy. His viewpoints were quite hawkish. He spoke about the positive employment change in the second half of 2017 and the Fed is currently working on a goal of promoting maximum employment and stable consumer prices. Interestingly, US President Trump speech did not have any impact on the market behavior recently. Today, US Revised UoM Consumer Sentiment report is going to be published which is expected to decrease to 99.4 from the previous figure of 99.9 and Revised UoM Inflation Expectation is also expected to increase in value from the previous value of 2.7%. On the other hand, recently CHF has been quite mixed amid economic reports from Switzerland including Retails Sales with possible negative reading at -1.4% decreasing from the previous value of 0.7% which was expected to increase to 1.1% and Manufacturing PMI report was published with an increase to 65.5 from the previous figure of 65.3 which was expected to decrease to 64.1. As for the current scenario, CHF is expected to gain certain momentum in the coming days before USD takes on its gains in the future. Ahead of the upcoming Rate Hike this month, further bullish pressure on the USD side is more probable.

Now let us look at the technical view. The price is currently residing below 0.9450 resistance area with a daily close which is expected to lead to certain bearish pressure in the pair with a target towards 0.9250 support area. Moreover, the price still resides inside the corrective range bound. As the price remains below 0.9450 with a daily close, further bearish pressure is expected in the coming days.

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