Technical Analyst, Saxo Bank
UDCHF is now seemingly headed towards the next significant resistance and 0.786 retracement at around 0.9050, with a potential spike to the 0.91 level also in sight.
Should USDCHF close above 0.9050, it could signal further uptrend towards the 0.92 to 0.9245 range, with 0.9245 marking the peak of October 2022.
The daily RSI's positive sentiment with no divergence, supports the likelihood of higher USDCHF levels.
On the weekly chart, the RSI is nearing the 60 mark, and a close above this level would confirm the bullish picture.
Conversely, if USD/CHF retreats below 0.89, it would undermine the current bullish perspective
EURCHF is experiencing a significant bullish movement, currently testing the resistance at around 0.9775 after surpassing a minor resistance at 0.97.
This bullish move follows the pair's break above a falling trendline that dates back to January 2022 and its break back above the 200 Daily Moving Average, signaling a strong upward momentum.
On the weekly chart, EURCHF has reached the 0.618 Fibonacci retracement level, indicating a potential area for a short-term correction before the likelihood of further upward movement.
Should EURCHF close above the weekly Ichimoku Cloud (Shaeded area), it could set the stage for a rise to the 0.786 retracement at 0.9917, though a minor pullback might occur in the short term.
Both daily and weekly RSIs are reflecting positive sentiment with no divergence, suggesting that higher levels for EUR/CHF could be on the horizon
However, if the pair retreats below 0.97, it could negate this bullish outlook
2024: The wasted year
Markets are driven by election optimism, overshadowing growing debt and liquidity concerns. The 2024 elections loom large, but economic fundamentals and debt issues warrant cautious investment.
As US economic slowdown hints at a shift away from exceptionalism, USD faces downside with looming Fed cuts. AUD and NZD set to outperform as their rate cuts lag. JPY gains on carry unwind bets and BOJ pivot.
Amid AI and obesity drug excitement, equities see varied prospects: neutral on overvalued US stocks, negative on Japan due to JPY risks, positive on Europe. European defence stocks gain appeal.
With the economic slowdown, quality assets will gain favour, especially sovereign bonds up to 5 years. Central banks' potential rate cuts in Q2 suggest extending duration, despite policy and inflation concerns.
Commodities poised for rebound. The "Year of the Metal" boosts gold and silver, copper awaits rate cuts. Grains may recover, natural gas stabilises. Gold targets $2,300-$2,500/oz, copper's breakout could signal growth.
Markets are driven by election optimism, overshadowing growing debt and liquidity concerns. The 2024 elections loom large, but economic fundamentals and debt issues warrant cautious investment.
As US economic slowdown hints at a shift away from exceptionalism, USD faces downside with looming Fed cuts. AUD and NZD set to outperform as their rate cuts lag. JPY gains on carry unwind bets and BOJ pivot.
Amid AI and obesity drug excitement, equities see varied prospects: neutral on overvalued US stocks, negative on Japan due to JPY risks, positive on Europe. European defence stocks gain appeal.
With the economic slowdown, quality assets will gain favour, especially sovereign bonds up to 5 years. Central banks' potential rate cuts in Q2 suggest extending duration, despite policy and inflation concerns.
Commodities poised for rebound. The "Year of the Metal" boosts gold and silver, copper awaits rate cuts. Grains may recover, natural gas stabilises. Gold targets $2,300-$2,500/oz, copper's breakout could signal growth.