The pair we’d look at today is the USD/CHF. We have seen some gains recently and expect this trend to continue. The pair overcame the falling trend line in the beginning of the new month; we have confirmations of the increase by the 20- and 50-period moving averages, so we definitely expect the pair to continue its bullish movement.
In news from the United States (or lack of such), the Fed decided not to raise interest rates due to disappointing economic reports from the past weeks. They do not necessarily see the slow growth as a problem because the States still demonstrate a strong labor market, so likely the lukewarm stages of growth are just a temporary issue as the country has been adapting to a new government and a new president for the past few months. Overall, the Federal Reserve is not alarmed and while they left the rates unchanged at their last meeting, increasing them later in 2017 is still an option if new economic data comes in positive.
What’s important right now is to watch out for the bullish movement’s continuation. If the pair remains above 0.9915, keep an eye on the nearby resistance level at 0.9955. Just in case, bear in mind that the rate is also near a support level at 0.9900.
As of the moment of writing this article, the USD/CHF is around 0.9924 and most technical indicators are giving us sell signs.
