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USD/CHF find support at 5-DMA, safe haven flows to strengthen CHF?

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

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - The USD/CHF pair was supported by 5-DMA at 1.0172 in Asia, but the recovery off 5-DMA lows remains capped around 1.0180 levels.

    Stuck between Key intraday MAs

    The spot is stuck between the hourly 100-MA and hourly 200-MA located at 1.0819 and 1.0169 levels respectively. The financial markets in Asia stayed risk averse and the weakness in the oil also points to risk-off in Europe.

    Hence, the CHF may remain bid on account of it being a regional safe haven. Meanwhile, expectations of more aggressive ECB easing also puts pressure on the SNB to retaliate. Consequently, the gains in CHF could be capped if speculation of more monetary easing across Europe catches fire.

    USD/CHF Technical Levels

    The immediate resistance is seen at 1.0819 (hourly 100-MA), above which the spot could target 1.0224 (previous day’s high). On the other hand, a break below 1.0169 (hourly 200-MA) could see the pair extend the drop to 1.0132 (Jan 29 low).
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