USD/CHF comes down to test 1.0000

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 20, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Edinburgh) - The risk-off tone is picking up further pace on Wednesday, now sending USD/CHF to challenge the psychological parity level.

    USD/CHF supported by the 20-day sma

    The current daily decline of the pair seems to have met decent support in the area just below parity, where is located the 20-day sma. However, the risk aversion continues to dominate the sentiment for the time being, favouring further CHF-buying and adding downside pressure to spot.

    In the data space, the ZEW Survey-Expectations is due in Switzerland, while inflation figures tracked by the CPI, Housing Starts and Building Permits are expected in the US calendar.

    USD/CHF significant levels

    The pair is now losing 0.30% at 1.0002 facing the next support at 0.9954 (low Jan.15) ahead of 0.9914 (76.4% Fibo of 1.0335-0.9784) and finally 0.9888 (100-day sma). On the other hand, a breakout of 1.0125 (38.2% Fibo of 1.0335-0.9784) would aim for 1.0206 (23.6% Fibo of 1.0335-0.9784) and then 1.0335 (high Nov.26).
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