USD/CHF extends losses for 3rd straight session

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 25, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The USD/CHF pair finally broke the Asian consolidation box to the downside and now languishes near session lows below 0.99 handle.

    USD/CHF capped by 0.99 handle

    Currently, the USD/CHF pair trades -0.06% lower near fresh session lows of 0.9980, unable to extend beyond 0.9900 levels. The major shaved-off gains and turned in the red zone in early Europe on the back of increased flight to safety after the Chinese equities tumbled almost 6% and refuelled the concerns over China’s stock markets volatility and its impact on the global economy.

    Therefore, in times of uncertainty, investors ran for cover in the traditional safe-haven Swiss franc, driving USD/CHF lower. Adding to the negative sentiment around the major, the greenback was also sold into a renewed bout of risk-aversion, while poor new home sales date released on Wednesday also continued to weigh on the USD bulls.

    Markets will continue to monitor the sentiment around the oil prices and global equities, while the main focus will remain the US capital goods data.

    USD/CHF Technical Levels

    To the upside, the next resistance is located at 0.9899/0.9908 (daily high/1h 200-SMA) and above which it could extend gains to 0.9950 (daily R1/ psychological levels). To the downside, immediate support might be located at 0.9848/39 (Feb 24 Low/ 200-DMA) and below that 0.9800 (round number).
    For more information, read our latest forex news.

Share This Page

free forex signals