USDCHF: Pair Slides on US dollar Weakness

12 / 03 / 2018
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The greenback came under selling pressure again on Monday and was trading broadly lower, with the USDCHF pair dipping 0.20% during the London session and hovering around the 0.95 handle.

Trump’s imposed tariffs were taken very positively by the financial markets and stocks rallied sharply on Friday, while the US dollar failed to react in a volatile way. In addition, the departure of Gary Cohn from the Trump administration provided another bullish impetus for stocks.

There are no major news on the agenda today and investors will wait for Tuesday’s inflation data. Inflation is expected to accelerate a notch to 2.2% on the yearly basis, while the core gauge is forecast to remain unchanged at 1.8% year-on-year. Rising inflation, along with rate hikes expectations, had failed to support the US dollar so far.

The USDCHF pair managed to get above the critical resistance of 0.9440 and as long as it trades above, the short-term outlook appears bullish. Another support is seen at the 0.94 mark.

On the other hand, the resistance is located at Friday’s highs of 0.9540 and if broken, further rise toward the 0.96 level seems possible. In all cases we strongly recommend to have rigorous money and risk management.

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