USD/CHF awaits the news

Author: FBS | Category: News

A look at USD/CHF ahead of key US data releases today

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The USD is awaiting American economic figures that are due later today (preliminary GDP growth, durable goods orders, core PCE price index, personal spending, and Chicago PMI). The figures may bring some volatility to USD/CHF.

For the past couple of days, USD/CHF has been consolidating below the resistance line that connects the highs of October and November in the 0.9990 area. 

Notice that this is just below the 1.0000 mark - the parity level that naturally represents a considerable obstacle for buyers. In addition, the price has reached the upper Bollinger Band on the D1 and the Stochastic Oscillator is in the overbought area. 

This too should make the advance more difficult. On the downside, support has been around 0.9965. The decline below this level will open the way down to 0.9947 (200-day MA). Earlier this line didn't manage to hold the price action. 

The next levels to watch on the downside are at 0.9927 and 0.9885 (the 50- and the 100-day MAs respectively). Such a scenario will come into play if the market risk sentiment worsens. 

If the United States and China keep moving towards a phase 1 trade deal and America releases decent economic data, USD/CHF may try for a break of resistance. If the pair settles above 1.0000, the new bullish targets will be at 1.0030 (October high) and 1.0050.

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This post is written and submitted by FBS Markets for informational purposes only. In no way shall it be interpreted or construed to create any warranties of any kind, including an offer to buy or sell any currencies or other instruments. 

The views and ideas shared in this article are deemed reliable and based on the most up-to-date and trustworthy sources. However, the company does not take any responsibility for accuracy and completeness of the information, and the views expressed in the article may be subject to change without prior notice.

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