July 15, 2022
USD/CHF: The Swissie pair has been showing a bearish dynamic after it failed to reach the important resistance of 0.9900 yesterday. The chances of a 100 basis points rate hike by the Federal Reserve are rising, concerning the market participants. Fed policymakers sound hawkish in their interviews. A 1% rate increase could test the economy, and nobody is sure that it may deal with it more comfortably this time. Failing to hike the rate may drive the economy towards recession. On the Swiss franc front, the focus will remain on comments on interest rates by the Swiss National Bank, which will reveal the regilator’s short-term moves.
BUY 0.9830/TP 0.9930/SL 0.9790
USD/CAD: The Loonie pair is trading within a narrow range, having demonstrated correction. The major attracted sellers after bulls failed to hold the fresh yearly highs above 1.32 level. On the loonie front, investors are still worried about the 1% rate hike announcement by the Bank of Canada. Energy bills and food products drove the inflation rate up, forcing the Bank of Canada to announce an aggressive 1% rate hike. Meanwhile, the oil prices retraced as a responsive buying action pushed the black gold higher after breaking support of $90.00. This indicates that the extremely oversold signals have supported the oil prices, however, the downside is still possible.
BUY 1.3100/TP 1.3300/SL 1.3000
WTI: WTI prices reached 89.40 mark yesterday, after sellers had been pushing it all day. It managed to recover nearly all losses after falling as investors focused on the prospect of a large U.S. rate hike later this month that could limit inflation but at the same time hit oil demand. Oil prices fell in the past two weeks on recession concerns, despite a drop in crude and refined products exports from Russia amid Western sanctions and supply disruptions in Libya. U.S. President Joe Biden will fly to Saudi Arabia, where he will attend a summit of Gulf allies and call for them to pump more oil, which could trigger the sellers once again.
SELL 93.50/TP 90.00/SL 95.00