Technical Comment: The USD / CHF pair remains within the long-term upward trend, but we are currently seeing the price moving in a short-term downward trend. The diagonal break and test at 0.99878 (23.6 Fib) accelerated the downward movement to the current support at 0.98351 and the diagonal. We look where the green arrows of the Swiss franc will continue to fall on the back of risk-on in the stock because investors will come out of the francs as safe heaven. The fall in the price of the past two days is explained by the overall depreciation of the US dollar amid the expectations of interest rates cut in July by the Fed. The short-term northward adjustment is expected to reach levels around 0.99286, where the price would again face resistance.
Fundamental Comment: The rise in the Swiss franc is jeopardized by the sentiment enhancement, but given the divergence of the monetary policy of the Swiss and US central banks, we can see some appreciation of the franc against the dollar. From this point of view, a break below the diagonal line and retention below it will provide a prerequisite for further franc appreciation to levels around 0.97118 short-term and long-term to 0.95885.
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