USD/CHF extends decline and hits fresh lows below 1.0100

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 3, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Córdoba) - The decline of the US dollar across the board pushed USD/CHF below 1.0100, to the lowest level since January 22.

    The pair is falling for the third day in a row as it continues to retreat from 2-month highs that reached last week at 1.0255. Since then it has fallen almost 200 pips. Recently it bottomed at 1.0091 and it was trading at 1.0105/10.

    Greenback is under pressure in the market, despite the decline in stocks. Market expectations about a rate hike from the Fed in March continue to fade, reducing the attractive of the US dollar.

    USD/CHF approaching important support

    The decline brought the price toward the 20-day moving average that stands at 1.0085; the mentioned MA offered support during January. A daily close under that level could signal a continuation of the decline.

    If USD/CHF continues to slide the next relevant support could be the lower limit of the current bullish channel that has been in place since mid-December. The lower limit stands around 1.0010/20 and a consolidation below would open the doors for more declines.
    For more information, read our latest forex news.

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