USD/CHF struggling to extend beyond 0.9950 on risk-off

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 11, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The renewed selling pressure seen in the Chinese stocks, keeps the recovery in the USD/CHF capped below 0.9950, as seen since mid-Asia.

    USD/CHF keeps the red as risk-off persists

    Currently, the USD/CHF pair trades -0.06% lower at 0.9943, with every attempt to extend higher sold-off at 0.9948. The CHF bulls are seen defending the 0.9950 barrier as markets continue to favour the safe-havens amid sharp sell-off in the Chinese equities. China’s stock markets witnessed fresh selling interest following softer inflation numbers released over the weekend.

    Moreover, broad based US dollar retreat also weighs on USD/CHF’s recovery mode from a brief dip to 0.9881 lows struck earlier in Asia. Looking ahead, markets now await the European open for fresh cues on the major.

    USD/CHF Technical Levels

    To the upside, the next resistance is located 0.9965/78 (5-DMA/ 1h 50-SMA) levels and above which it could extend gains to 1.0016 (50-DMA). To the downside, immediate support might be located at 0.9900 /0.9894) round number/ 100-DMA) and below that 0.9881 (daily low).
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