USD/CHF is moving in different directions on Tuesday, consolidating after the previous decline and trading near the level of 0.9150.
Bears" took the initiative at the beginning of the week, taking advantage of the improving situation in the financial system after the statement of First Citizens BancShares Inc. representative about purchasing a large part of the credit portfolio of the troubled SVB. The rhetoric of American bankers had a positive effect on the banking sector in Europe as well. Deutsche Bank shares are recovering fast after an unexpected collapse caused by market rumors.
Investors are waiting for Christine Lagarde's speech today (13:15 GMT), expecting to hear news on the regulator's further monetary policy course. The ECB raised interest rates by 50 basis points in March and has signaled it will continue to fight inflation while the Fed is likely to take a wait-and-see approach.
The Swiss authorities are considering the issue of prosecution of Credit Suisse Group AG top-managers, whose actions provoked the bank bankruptcy.
On Wednesday the March index of economic expectations of Switzerland from ZEW will be released. It is expected further decline of the index from (-12.3) to (-18.9) p. There will also be published the Swiss National Bank's report for the first quarter.
USD/CHF Technical analysis
Major Forex indicators are showing a downward trend. Bollinger Bands are confidently turned down, MACD has a sell signal. Stochastic Oscillator went down to the 20% level, but could not pass through the oversold area and went flat.
After the pair has consolidated below the key support at 0.9100, we will open a short position with a target at 0.9000. Stop-loss is set at 0.9150.
Breakout above resistance at 0.9200 will signal the return of buyers to the market. Take profit is at 0.9300. Protective stop is set at 0.9150.