At the moment, the market is basically at a standstill. In the US for example, the 10 year Treasury bond yields are rising but then they the USD is not following suit meaning that market participants are looking for political triggers rather than economic indicators for assurance.
At the moment, tax bill reforms progress anchors on consensus between the two differing factors. The two available versions from the House and senate appear to be incomplete and not inclusive of proposals made by certain senate constituents. With this in mind, the USD is likely to drag until a resolution is found.
Otherwise, this might turn to be another Obamacare legislative debacle and the USD weakness shall be extended.
In Europe, the ECB’s forecast of UK economic growth is dull. In fact they predict next year’s GDP growth to expand by 1.3% down from 1.8% and in the event that ECB forecast turns out to be true then the vicious cycle of high inflation, low growth and interest rates should be worrying for GBP bulls. If not, the GBP rally shall continue.
CHFJPY Technical Analysis Daily chart
Today, I will look to buy the CHF, sell the JPY and hold it for a couple of days. As you can see, the general trend is to the upside and with a buy signal in place following a bull divergence, CHF bulls are set to gain. The double bottoms with bear pin bars indicate bull pressure and it is likely that prices might close above the 20 period MA and the resistance trend line between September 29 and October 19 highs. Immediate bull target is at the strong support level of 115.50 and then later 116.50.
So trade as follows:
Buy: 114
Stop Loss: 113.50
Take Profit: 115.50, 116.50
Have a nice weekend

CHFJPY Daily chart-November 10, 2017

Source: Dalmas FX

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