After multiple tests of a multiyear wedge’s resistance the Swissy has finally broken out today.
Earlier this year, the USDCHF rallied past this multi-year trend line and reversed course? Will it happen again?
The USDCHF rally has been very strong in the last several weeks from the beginning of the year, but the pair has ran into a wall of resistance at the multiyear trend line that spawns back from the end of 2016.
The Swissy (USDCHF) may be setting up a bear flag pattern after the rebound from the 38% retracement of the September low to the November highs.
Ahead of Thursday’s ECB meeting and with a crisis brewing in Spanish Catalonia the EUR is trading heavy or at significant resistance in some crosses which are worth watching for bearish reversals.
Tensions have been recently rising in Spain, particularly in the run up to the Catalonia independence referendum. The Spanish constitution explicitly forbids such a referendum, but this didn’t stop the Catalans from trying to have it.
The Federal Reserve announced on the 20th September that it would begin its multi-trillion Dollar balance sheet reduction as planned, starting October 2017.
News headlines were dominated last week by the US presidential elections. Prior to November 8th the markets were anticipating a Clinton win (albeit by a small margin). Bookmakers had HRC anywhere between 70% and 90% to win. Well they were all proved spectacularly wrong as Donald Trump cruised to victory.