Forex trading: Gold at record levels – SNB interest rate falls: More to come [Video]
|The Swiss National Bank just lowered their Interest Rate so why is CHF going temporarily stronger?
This is a recording of the major CHF pairs at the time of the announcement.
The reason that CHF went stronger is that there were rumours about a 0.5% decrease but we got the predicted 0.25%.
If we look at the hourly chart we can see the whipsaw of 58 pips in this short-term uptrend.
We are still waiting for some JPY strength but all pairs are continuing weaker.
As we saw last time on USDJPY, the stochastic oscillator is overbought and we are seeing what may be a rising wedge.
However, we are seeing an oversold stochastic oscillator on NZDJPY and we are at a key level with more resistance above.
Gold is at record highs now at $2670 due to increased tensions in the Middle East.
Watch the news out of the United Nations now, and any indication of a cease-fire, to indicate a reversal.
Silver is not quite at all-time highs but it has followed Gold as it sometimes does.
Again, good news on the geopolitical front may see price action fall.
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