USDCHF Whales swimming south

The USDCHF currency pair is currently trending downwards, as indicated by the RSI and the fact that it has broken through key structural points. The RSI is also below the midline and has recently recovered from being oversold. The cci is at its midline and trending upward.

The Swiss franc is currently close to its ten-month high against the US dollar, due to a recent pullback in the greenback and investors assessing key economic data. Inflation in Switzerland has slowed to 2.8%, below the SNB's projection of 3% and market estimates of 2.9%, which may decrease the urgency for aggressive tightening. However, the SNB Chairman Jordan has stated that further rate hikes should not be ruled out as second-round inflation threats are still prevalent in the Swiss economy.

An analyst observing the market notices that the pair has been consolidating, and predicts that it will continue trending down breaking structure points under bearish market flow. They suggest looking for long positions around .90200 and then .89350 as price did punch out of the lower Bollinger band but bounced off the midline, aka 20ma. They also mention that the December’s price figures showed that inflation slowed to 2.8% in Switzerland, below the SNB’s projection of 3% and market estimates of 2.9%, easing the central bank’s urgency for aggressive tightening. The SNB raised its key rate by 175bps last year, lifting borrowing costs out of the negative territory for the first time since 2011.





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