CHF: CPI’s Expected Impact on the Market

CHF: CPI’s Expected Impact on the Market

2024-01-10 • Updated

This Monday, the SCB (Statistics Sweden) published its CPI data which came out 0.1% better than the forecast and 0.2% greater than the previous. This indicates a strengthening of the Swiss economy and could be a trigger for a decline of other commodities traded against the CHF. Here are some of my trade ideas on that note.

USDCHF - H4 Timeframe

USDCHFH4-agfd.png

On the 4-hour timeframe of USDCHF, we saw a sharp rejection of price from the resistance level following the NFP data release last Friday. This move broke a minor trendline, and closed below the 200-period moving average on the 1-hour timeframe before touching the trendline support and bouncing back. For now, I consider the current push up to be a retest of the supply zone since it overlaps the 100-period moving average on the current timeframe. Based on these factors, I have a bearish sentiment in place as touching USDCHF.

Analyst’s Expectations: 

Direction: Bearish

Target: 0.84406

Invalidation: 0.85822

CADCHF - H4 Timeframe

CADCHFH4-sadff.png

CADCHF is currently climbing up, in a move that I consider to be a retest of the supply zone, and possibly the 100-period moving average as well. The 76% of the Fibonacci retracement tool is another confluence I would consider in this scenario. Therefore, overall sentiment is bearish.

Analyst’s Expectations: 

Direction: Bearish

Target: 0.63439

Invalidation: 0.64049

GBPCHF - H4 Timeframe

GBPCHFH4-sdf.png

The overall trend on GBPCHF is confirmed bearish based on the moving average array, and the market structure. My entry confirmations are based on the Fibonacci retracement levels, drop-base-drop supply zone, and the trendline resistance.

Analyst’s Expectations: 

Direction: Bearish

Target: 1.08005

Invalidation: 1.08630

CONCLUSION

The trading of CFDs comes at a risk. Thus, to succeed, you have to manage risks properly. To avoid costly mistakes while you look to trade these opportunities, be sure to do your due diligence and manage your risk appropriately.

TRY TRADING NOW

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