Yes, indeed USDCHF (US Dollar / Swiss Franc) have reached above 'PARITY' levels as stated in our market call dated April 20, 2018. It is currently trading in Asian session at 1.0011 as of 5.7.18 coming from a long stretch at 0.9305 since February 2018. These prices now have VALIDATED our Market Price Call.
Reference Analysis: USDCHF & GBPCHF Cross Rate
The USD remains firm even when European markets would be on a holiday; FX markets for now have remained quiet with the underlying sentiments for the USD hold. Comparatively weaker with the YEN as a corrective move down to 108.65 occurred from the prior week.
Relative to a weaker Sterling that had missed expectation reports and the unlikelihood of not being able to raise UK rates have prompted CABLE or GBPUSD to move lower to levels at 1.3485. Thus spilling over the GBPCHF week's movements lower that drove it down towards 1.3473 coming from 1.3855.
Reference to GBPUSD
Reference to GBPCHF Cross Rate
Thus it shows how the market's behavior on a massive decline can create a 'Price Realignment' that was identified during the move. Where the aftermath of this decline also creates a probable pause and a price pullback scenario.
For those who have been following our sequence analysis on the USD and the Swiss Franc, now its time to consider which among the best suitable Cross rates would ensure that the gains made from the long stretch can be protected. Or simply cash-in those gains and watch how the market unfolds.
ReplyDeleteUSD DXY just marked a new high above 93.00 basis point. With the USDCHF at 1.0020 retesting its highs fueled by the USD surge amidst a corrective move for crude oil below the USD70.00/bbl mark.
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