In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the USDCHF for 14th MAY 2024.
Key Takeaways
- The decisiveness of the SNB: In March, Swiss National Bank lowered its benchmark rate from 1.75% to 1.50% while emphasizing to intervene in the market if Swiss Franc continues to depreciate further.
- Divergene promotes the appreciation: The central bank leads the way by reducing interest rates to reduce appreciation pressure of the Swiss Franc as other major economies may start to reduce their own interest rates later this year.
- Geopolitics drives the Swiss franc: Although the Swiss National Bank adopts a dovish stance, as tensions in the Middle East escalate, as a risk reversal indicator of market positioning and sentiment barometer, the Swiss franc is still sought after by safe-haven funds, and its future trend will depend on the tension.
- Rising tensions in the Middle East have raised investors’ risk aversion sentiment, triggering high demand for safe havens such as Swiss Franc. Thus, its future trend depends on overall geopolitical developments in the future.
Technical Analysis
Daily Chart Insights
- Stochastic Oscillator: The indicator oscillates near the oversold region, indicating a continuation of current consolidation phase.
- Correction range: The pair’s upside is blocked by 33-MA line (red), which coincides with the neckline of previous double top formation. For the time being, it may continue to oscillate within the channel with the possibility of extending lower if a break below is successful.
4-hour Chart Analysis
- Stochastic oscillator: The indicator forms bullish signal prior to oversold region, suggesting strong bullish support from downside. Be alert of a possible retracement due to multiple strong resistance at the upside.
- Potential suppression price: The pair oscillates within a small price range for the time being. Due to multiple strong resistance up top such as moving averages and psychological level of 0.9100, be vigilant for a strong pullback thereafter.
Pivot Indicator
- According to the trading central in Ultima Markets APP, the central price of the day is established at 0.9060,
- Bullish Scenario: Bullish sentiment prevails above 0.9060, first target 0.9095, second target 0.9110;
- Bearish Outlook: In a bearish scenario below 0.9060, first target 0.9045, second target 0.9030.
Conclusion
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Disclaimer
Comments, news, research, analysis, price, and all information contained in the article only serve as general information for readers and do not suggest any advice. Ultima Markets has taken reasonable measures to provide up-to-date information, but cannot guarantee accuracy, and may modify without notice. Ultima Markets will not be responsible for any loss incurred due to the application of the information provided.
