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18 Jun 2013
USD/CHF set up for a bounce?
FXstreet.com (London) - USD/CHF has been range bound between 0.9220 / 0.9270 topside (April/May lows), and a long way down from the 0.9840 highs of May.
The SNB meets this Thursday and it will be interesting to see if the SNB has something new to offer after the aggressive downgrade to inflation expectations in their last meeting. Before then, mind you, FOMC will be key focus in the market and would be more likely the catalyst for a direction one way or the other for the time being. Stephen Gallo at BMO said last week that they expect the SNB to strike a more dovish tone at this week’s assessment of monetary policy, leaving market participants with the right incentives to consider progressive CHF sales as a viable opportunity for profit under current circumstances.
USD/CHF ripe for a bounce
On the basis of recent weekly changes in USD/CHF, Stephen Gallo said last week the pair appears ripe for a nice bounce. Indeed, the pair have halted and on the charts it appears that momentum is building up to the upside this week. With USD/CHF positioning nicely, he thinks that Bernanke and the FOMC opting to maintain a rough market consensus for a September tapering will make USD/CHF an excellent buying opportunity from the aforementioned support area, should the SNB choose to go “dovish” on Thursday. MA’s in the short term are offering a bullish signal while in the longer term, the pair remain offered and ma’s indicate further to go with a neutral stance on the weekly charts.
The SNB meets this Thursday and it will be interesting to see if the SNB has something new to offer after the aggressive downgrade to inflation expectations in their last meeting. Before then, mind you, FOMC will be key focus in the market and would be more likely the catalyst for a direction one way or the other for the time being. Stephen Gallo at BMO said last week that they expect the SNB to strike a more dovish tone at this week’s assessment of monetary policy, leaving market participants with the right incentives to consider progressive CHF sales as a viable opportunity for profit under current circumstances.
USD/CHF ripe for a bounce
On the basis of recent weekly changes in USD/CHF, Stephen Gallo said last week the pair appears ripe for a nice bounce. Indeed, the pair have halted and on the charts it appears that momentum is building up to the upside this week. With USD/CHF positioning nicely, he thinks that Bernanke and the FOMC opting to maintain a rough market consensus for a September tapering will make USD/CHF an excellent buying opportunity from the aforementioned support area, should the SNB choose to go “dovish” on Thursday. MA’s in the short term are offering a bullish signal while in the longer term, the pair remain offered and ma’s indicate further to go with a neutral stance on the weekly charts.