USD/CHF sold-off at 100-DMA, awaits SNB's Jordan

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 23, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    The USD/CHF pair halted its vertical rise and dropped sharply from three-week highs in the Asian session, as risk-off environment boosted the CHF bids.

    USD/CHF offered at key resistance (parity + 100-DMA)

    Currently, the USD/CHF pair trades -0.36% lower near fresh session lows of 0.9959. The major extends its corrective slide into early Europe as markets continue to prefer safer bets such as the Swiss franc as opposed to riskier assets, while risk-off trades are expected to haunt the European markets as well.

    PBOC’s slashing the yuan reference rate combined with renewed weakness in oil prices fuelled risk-aversion across the board. While markets also remains cautious and favour the Swiss currency ahead of Swiss National Bank’s (SNB) Chairman Jordan’s speech on the monetary policy, which is expected to spur some volatility.

    Calendar-wise, the S&P/CS Composite-20 HPI y/y, consumer confidence and existing home sales data will be closely eyed for further take on the US dollar. Meanwhile, the USD index now trades -0.05% at 97.30 levels.

    USD/CHF Technical Levels

    To the upside, the next resistance is located at 1.0000/06 (parity/ 100-DMA) and above which it could extend gains to 1.0049/50 (daily R1/ psychological levels). To the downside, immediate support might be located at 0.9910/00 (20-DMA/ round number) and below that 0.9864/49 (1h 200-SMA/ Feb 17 Low).
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