Good morning Traders!
In yesterday’s press conference, which followed another rate increase by the FED of 0.25%, the FED chair Jerome Powell, has hinted that we just may see a pause to the FED’s aggressive tightening policy.
USDCHF
This has seen the US dollar weakening against many of it’s trading partners, and the move on USDCHF has seen the market breaking the support level at around the 0.8860 level.
With the market currently overextended from it’s Moving Averages, on the short term, I am looking for a pullback to the 0.89 area, which is a local Support level on the mid timeframe, and then for a rollover setup, keeping in mind, that the market is very close to it’s major low last printed in January 2021.
For a longer term approach, I will be keeping an eye for a deeper pullback, to the 0.9050 area, which may bring the market closer to it’s Moving Averages on the higher timeframes, and then look for signs that the pullback is over and the market is ready to resume it’s overall downtrend.
Happy Trading!
