- April 26, 2021
- Posted by: cabana-admin
- Category: forex trading, Market Insights
General overview: USD/CHF edged lower for the second straight day amid some heavy USD selling bias. Reduced Fed rate hike bets, sliding US bond yields continued weighing on the buck. The pair is maintained its sell side in the market and offering the bears for more bearish side this time move. The pair is expected to move till level 0.9000 level and the pair added to the previous day’s modest losses and remained depressed for the second consecutive session on Friday amid the heavily offered tone surrounding the US dollar. On the other hand, renewed fears about another dangerous wave of corona virus infections in some countries continued weighing on investors’ sentiment. This was evident from a weaker tone around the equity markets, which drove some haven flows towards the Swiss franc and exerted some additional downward pressure on the USD/CHF pair.
Technical analysis : From the technical point of view we can say that pair is testing the depth of the market by creating the bearish sentiments among the sellers as the market is creating the long side selling signals is the market and leads towards the sell side in the market . The market is suggesting the bearish pressure is still far from being over. Any meaningful recovery attempt might still be seen as a selling opportunity. The pair remains vulnerable to prolong its recent pullback from multi-month tops touched earlier this month and aim to test sub-0.9100 levels, support marked by the very important 200-day SMA. On the 4 hourly charts market crates the downtrend in the market as the death crossover is supporting the market for the selling signals. The positional traders can position in the market and expected to cross 200 SMA on the daily chart. The support level of the market is 0.9050 followed 0.9000 and resistance 0.9188 followed 0.9250.
Trade idea: Our sellers will sit on the sell side at level 0.9140 target will be 0.9060 followed 0.9000 and stop loss will be 0.9220.