US Dollar versus Swiss Franc has found a strong support at 0.91084 while breaking out once on 28th July towards our lower trend line in weekly but reversed took a reversal from 0.90216 - just a few pips above 0.89670 which acted as our critical support area. Markets are waiting in a mood to monitor the mode ahead of the Jackson Hole meeting, which begins on Thursday with the currency markets might not provide any major breakouts ahead of the held event. Economic activities will likely be changed from friday and  Fed Chair Jerome Powell will address the symposium. The main question of concern in the markets is whether Powell will provide any insight into the timing of a Fed taper. Risk sentiment has improved with the Biden Administration making progress on its budget and infrastructure proposals, but the mood could quickly shift, depending on what Powell says – if he hints that a taper is imminent, that would likely give the dollar a boost. If, however, Powell chooses to lay low and doesn’t say much about a taper, risk sentiment could improve and weigh on the greenback.

BULLISH AND BEARISH CONDITIONS / POSSIBILITIES :

The mentioned fundamentals in our market forecast will play a major trump card this week and retail traders need to watch out for high volatility that might take out stop losses. USDCHF took a sharp bullish reversal from 38.2% fibb retracement level and provided us with a firm closing above 50% fibb from current market scenario. This indicated that the recent support created is being well supported by the 50% fibb and is providing a heads up from technical point of view to position our buying trades. We are optimistic abt US dollar dragging Swiss Franc above 61.8% fibb which will eventually mark the continuation of a bullish trend towards our first stop at 0.92378 and 0.93000.

USDCHF

Aug 25 2021

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