USD/CHF (King Turtle): rise Slow and Steady

Обновлено
Fundametnal Analaysis:

USDCHF outlook is shaped by notable interest rate differentials and diverging monetary policies between the Federal Reserve and the Swiss National Bank (SNB). With the Fed holding rates at 5% and the SNB's current rate at 1.00% (down from 1.25%), the dollar remains more attractive to investors seeking higher yields. The potential for the SNB to further cut rates amplifies this dynamic, as lower Swiss rates could diminish the franc’s appeal, especially with inflation in Switzerland relatively subdued at 1.1%. In contrast, U.S. inflation sits at 2.5%, with the economy showing resilience, reducing the likelihood of imminent Fed cuts. This policy divergence creates upward momentum for USD/CHF, positioning the pair for further gains as investors capitalize on the interest rate advantage and the prospect of a more dovish SNB stance. Monitoring any shifts in SNB policy will be critical, as a rate cut would likely accelerate the pair's bullish trajectory.


Technical Analysis:

USDCHF chart shows a prevailing bearish trend, with the pair consistently making lower highs and lows. However, the price is currently testing a strong support zone near 0.84066, suggesting the potential for a bullish reversal. The chart hints at a possible breakout from the consolidation, with the first target (TP1) around 0.87269 and the second target (TP2) at 0.88325. The overall trend remains bearish, but if the price breaks above these levels, it could signal a reversal, especially if the SNB's dovish policy continues to weigh on the franc.


Заметка
The Swiss National Bank (SNB) has recently lowered its policy rate to 1.00% from a previous 1.25%. This cut could signal the SNB's concern about economic growth and inflation, making the Swiss franc less attractive for investors seeking higher yields. Traders should keep an eye on USD/CHF , GBP/CHF and EUR/CHF pairs, as further dovish moves may lead to franc depreciation.
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Fundamental AnalysisTechnical IndicatorsTrend Analysis

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