When the FOMC met last month and maintained the Dollar interest rates at 5.25%, the US Long term and short term treasury Treasury bills/notes/yields have been showing bearish signs. Since the bond market is the largest of all, its fair to say that this is where trends are established, which cause a ripple effect across all other markets including stocks, currencies and commodities. If and when the Yields start to fall, the dollar will regain its strength, as investors will be buying the treasuries and selling the stocks. This is most likely to happen if the FOMC maintain or cut the interest rates in the next meeting. Technically, USDCHF is sitting on previous support from December 2020, where the market paused and reversed before, and there is every chance the market will reverse here again. However, a breakout to the downside will also be a strong signal in the weakness of the Dollar. Until then, I remain bullish on USDCHF !
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Although price broke the highlighted support, there was no major breakout below 0.8600 to signal the continuation of the downtrend. Its very likely this was a fakeout. I am anticipating the support to hold and the bulls to come in at this point in the coming days/weeks.
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Finally , we will be able to confirm if this is a fakeout or a breakout. The FOMC meets today to announce the Dollar interest rates. In the last meeting, the FOMC maintained the rates at 5.52% for the first time since March 2022.If the FOMC maintains the interest rates at 5.25% for the second tome in a row, the DXY may rise from the current levels, and USDCHF may follow. If the FOMC increases the interest rates, then the DXY may follow further, confirming more downside for USDCHF.
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Get ready for the PIP count !
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Finally price is back above the support !
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That was a classic fakeout. The idea still remains valid.
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For the first time, price is trading above the support ! Fantastic !
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USDCHF slowly rising from the ashes, as the DXY also pushes higher !
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The market is forming deep lower wicks, an indication of bullish strength building up! ! Meanwhile, 100 PIPS !
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New highs on the trend @ 0.8900 !...150 PIPS !
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0.8950 is the new high on the trend !
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New highs @ 0.8980 !
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Watsup my trend followers ! 300 PIPS ON THE TREND !, 0.9060 is the new high on the trend !
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350 PIPS INNIT !
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550 PIPS ON THE TREND !
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After a minor pullback, the BULLS ARE BACK !
Thedeveloper