TECHNICAL ANALYSIS
On the daily chart, we can see that the USDCHF pair took off as the SNB went on the sidelines and the FOMC surprised with a more hawkish than expected dot plot. This price action is not the best as parabolic movements generally end in a big correction, which is something that the buyers would love to see at the moment. The break of the swing high at the 0.9144 level has opened the door for a rally into the next swing level at 0.9442. The trend remains clearly bullish though and the buyers are likely to pile in at every pullback. On the 4-hour chart, we can see that we have a minor upward trendline which would be a really good support for the buyers in case we get a big correction, although it’s hard to envision it at the moment. It seems like only a meaningful fundamental catalyst can provide such a big pullback which might be a weak US Jobless Claims report or much higher than expected Swiss inflation data.
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