For those of you who are new to the markets, USDCHF is the Swiss franc currency and the EURUSD is Euro against the US dollar. The USDCHF is on a bullish streak in recent days as risk-off sentiment hits. On Wednesday, we saw an extreme spike in risk appetite with a 6-point swing for this currency pair as it moved from 0.9825 down to 0.9865 marking its best day of 2018 so far, and hope to hold at this support level before moving higher over the next few days and beyond. The USDCHF is performing in line with GBPUSD which has been outperforming the rest of the majors for a couple of weeks now. At the start of this month, we saw GBPUSD trading at 1.4210 and on Thursday after UK inflation data we are currently seeing it at 1.4241. GBPUSD is on an uptrend trending to 1.4512 and if this continues, we could see a bullish spike for the pair as it has recently made a short-term high at 1.4436, so again take note of this level before we get too excited over the next couple of days. EURUSD has also been moving higher in recent days. After moving from 1.1617 downwards and holding at that support level against the US Dollar, we have seen a spike on Tuesday as risk appetite showed and EURUSD moved past the long-term trendline at 1.1600 that was seen at €1.1526 in late April and even passed parity to start trading around €1.
USDCHF Price Action Forecast
After a solid bullish start to the day on Wednesday, USDCHF is currently trading at 0.9858 as of this writing up from 0.9825. The next support level for this currency pair is at 0.9800 followed by 0.9750 and finally, can we see the trendline that has formed at 0.9775 come into play here again?
We’ll see how and if USDCHF moves past these levels but for now, it looks to be in a good position to be testing resistance around the 1.00 level mid-week. A break of this level could see USDCHF hit 1.0050 or higher over the next couple of weeks so we’ll just have to wait and see how it trades on Friday and in the days to come.
EURUSD Price Action Forecast
A solid spike yesterday saw EURUSD move past 1.1600 to trade around €1.1756 at the time of this writing, so we do need to see how it holds here and if it can continue to push higher this week and beyond. The next price level is at 1.1826 then a bearish trendline at 1.1900 finally a move past parity could take us towards the next major resistance level at 1.2185 where we previously saw some resistance in late April.
#USDCHF РUSDCHF em queda at̩ os 0.94136 РTradingView Рhttps://t.co/zTNnvGWhsp
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Trading Recommendation: The EURUSD continues to lead this pair so as long as we can see a solid push past 1.1756, we should still expect further amounts of risk-off buying in EURUSD as the GBPUSD continues to outperform other markets. However, after a bullish start to the week, USDCHF will be looking for a move higher this coming week and beyond. That said, it is important not to be too eager to buy this pair as we are seeing risk appetite rise here. As such, stop-losses should be considered for the currency pairs we follow here and I would also suggest that you only look at those currencies about our trading recommendation.
USDCHF technical indicators:
Trading: The price action on this currency pair will remain in a ‘Bullish’ position over the next few days as EURUSD continues to outperform other major currencies and only slight resistance is seen at 0.9800 as of this writing, followed by 0.9850 then 0.9775. The next key level to watch for this pair is at 0.9800 which is the level previously discussed and I would expect this price point to act as resistance for USDCHF if it has any moves over the next few days so take note of these levels and how long they could hold.
