Forex: USD/CHF breaks 1.0155 support after KOF data

Fri, Oct 30 2009, 10:49 GMT
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FXstreet.com (Barcelona) – The Swiss Franc has finally broken the yesterday's low at 1.0165 against the Dollar in the minutes following the better than expected October KOF Leading Indicator in Switzerland. The USD/CHF has fallen from intra-day high at 1.0200 in the early European morning to hit intra-day low at 1.0155.

Currently the pair is trading around 1.0160/70, 0.20% below today's opening price action at 10185.

The Swiss KOF leading indicator has risen to 1.45 pts in October from 0.85 in September, a higher reading than 1.16 pots expected by market.

The ecPulse.com analysis team affirms: “The Dollar versus Swissy pair declined in correctional movements after momentum indicators adjusted to the downside where we see a support level at 1.0160 slowly becoming a neckline for a bearish technical pattern, as it proves the strength of the 1.0280 resistance level. The 50 MA is currently limiting any declines supported by the positive signs on the stochastic indicator, yet we believe the pair is to reverse to the downside to target 1.0030 once again. From here we expect the pair to decline as far as 1.0280 remains intact.”

USD/CHF

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