With USD/CHF on the cusp of a bearish engulfing month, we take a look at the pattern’s forward returns alongside the Swiss franc’s seasonality.
USD/CHF is approaching parity, a level which is clearly on the radar for market participants. Despite several failed attempts, USD/CHF has not closed above parity since May 2019. We could quibble over the fact that it opened above 1.0000… Read More
November has been off to a much better start for USD than October ended. And seasonality suggests DXY could be in for a positive close this month. This ties in nicely with Tuesday’s analysis, which showed bearish engulfing… Read More
The USD index (DXY) presented traders with a bearish engulfing candle on both the weekly and monthly chart by Friday’s close. So, will this bearish pattern live up to its grizzly name in the weeks ahead?
Using historical data, we’ve mapped out a seasonal matrix for FX majors and noted the bearish tendency for USD/CHF in September.
Source: Eikon, City Index To be more precise, GBP/USD has actually closed to a 25-month low. But having recently tested how the S&P500 responded to its 52-week milestone, we extend our curiosity the cable.
The Fed all but confirmed the U-turn that many were expecting. Whilst rates remained on hold, almost half of voting members now see two rate cuts this year.
DXY looks set to challenge the 2018 peak, although price action near-term could be stretched. Beyond February seasonality points lower, so how it reacts around the highs could be key as we head into March.