USDCHF Daily Outlook – Last week we were surrounded by more negative economic outlook globally and fears of the second wave of the Coronavirus. The USD dollar did make a comeback on Friday but the British Pound pulled back from gains thanks to the big shift in global risk sentiment as well as further Brexit talks uncertainty.
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The main economic event on Monday is the Bank of Japan’s interest rate decision as well as the UK-EU Brexit talks.
Today I’m looking at the USD/CHF pair which broke below the daily Ichimoku cloud last week, and then found support at the 78% Fibonacci retracement level of 0.944.
The future Ichimoku cloud remains bearish and the current cloud could be acting as a layer of resistance. So traders may view Friday’s bullish engulfing as a temporary correction that could be followed by further drops towards the key supports of 0.94 and 0.92.
Do you think this was a temporary correction or the bearish momentum has come to and end? Head over to the comments section and let me know.
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