Fundamental Analysis of USD/CHF for February 8, 2019 888011000 110888 USD has been the dominant currency in the set while CHF struggled to keep the bearish momentum after the cost broke above 0.9850 with a day-to-day close. The US FED has been pleased about the recent economic growth in the US that allowed USD to dominate CHF. Recently Switzerland’s Foreign Currency Reserves report revealed an increase to 741B from the previous figure of 729B. The positive Foreign Reserve report helped the currency to gain momentum versus USD causing certain correction in the pair. Just recently US bank Goldman Sachs is holding talks with the Swiss Market watchdog over possible getting in the country’s mortgage market. If this step is accepted, the Swiss economy might turn rather unstable for a number of months.On the USD side,today FED President of St. Louis Mr. James Bullard specified that the FED is currently attempting to tame inflation downward as the inflation target has actually been already met, however higher inflation than this may impact the economy in the future. Additionally, recently US Joblessness Claims report was published with a decrease to 234k from the previous figure of 253k which sadly could not satisfy the expectation of reducing to 220k. Ahead of Federal Reserve Chairman Powell’s testament on the state of the economy on 26 th February, USD is expected to trade with higher volatility with the gains in the coming days.Meanwhile, CHF handled to get particular momentum over USD, obstructing the spontaneous bullishpressure established recently in the set. CHF is expected to keep momentum.Now let us look at the technical view. The cost has formed Bearish Divergence just recently while sitting at the edge of 1.00 location from where the cost is anticipated to push lower towards 0.9850 support location in the coming days. As the price remains below 1.0050 resistance location with a daily close, the bearish pressure is expected to push lower in the coming days. SUPPORT: 0.9850, 0.9950 RESISTANCE: 1.0050 BIAS: BULLISH MOMENTUM: VOLATILEThe material has been supplied by InstaForex Business – www.instaforex.com

By | February 8, 2019

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