• FxWirePro: USD/CHF bears linger after whipsaws, hanging man, shooting star and Doji patterns, non-directional trend persists – trade boundary options

    Source: FxWire Pro - Technicals / 21 May 2018 09:36:10   America/New_York

    USDCHF forms shooting stars at 0.9994, 1.0025 and 1.0024 levels, hanging man patterns at 1.0025, 1.0003 and 1.0004, doji patterns at 1.0012 and 1.0014 levels that restrain rallies below 7SMAs, the current price remains below SMAs (refer daily chart).

    Both leading indicators are in tandem with bearish swings, for now, more dips likely if bearish momentum sustains.

    While the long-lasting non-directional phase in the major trend has also turned out to be bullish where stiff resistance is seen at 1.0050 levels, if the bulls managed to struggle for the healthy momentum, then this failure swings at stiff resistance are possible.

    We are however marking-to-market the USDCHF forecasts. The 2Q forecast is raised from 0.95 to 0.97, the 1Y forecast from 0.92 to 0.94. The projections may strike some as still being overly optimistic seeing as how interest rate differentials are returning as a central a driver of exchange rates, at least for the dollar.

    Contemplating lingering buying sentiments in near-term and bearish sentiments in the major trends, boundary binaries are recommended on trading grounds using upper strikes at 1.0020 and lower strikes at 0.9950 levels, on the contrary, it is advisable to deploy short futures of mid-month tenors on hedging perspective, with a view to arresting potential downside risks.

    Currency Strength Index: FxWirePro's hourly USD spot index has shown -15 (which is neutral), while hourly CHF spot index was at 6 (neutral) while articulating at 13:18 GMT. For more details on the index, please refer below weblink:

    http://www.fxwirepro.com/fxwire/currencyindex

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