FXstreet.com (Barcelona) - The USD/CHF has jumped higher during European trading after taking a tumble yesterday towards the depths of 0.9087 (December 20 minimum). On the heels of some overnight momentum, highlighted by the mounting concerns over the fiscal cliff, the American dollar has provided a sanctuary for investors. Subsequently, the pair is trading at 0.9138/39, up a steady +0.27% Friday.
According to Slobodan Drvenica, an analyst at Windsor Brokers Ltd., “A recovery attempt from yesterday’s fresh low at 0.9081 remains limited by previous lows and initial resistance at 0.9151, despite hourly indicators being positive, as 4h structure shows lack of momentum for stronger rally. However, further corrective action is not ruled out, with a retest of the psychological 0.9200 resistance, reinforced by its 55-day EMA.”
Technically speaking, consistent with the calculations of Drvenica, the USD/CHF will encounter means of resistance at 0.9155, onto by 0.9200 (key barrier), and 0.9240. On the decline, supportive measures will kick in if the pair moves below 0.9131, then 0.9105, and finally 0.9081.
According to Slobodan Drvenica, an analyst at Windsor Brokers Ltd., “A recovery attempt from yesterday’s fresh low at 0.9081 remains limited by previous lows and initial resistance at 0.9151, despite hourly indicators being positive, as 4h structure shows lack of momentum for stronger rally. However, further corrective action is not ruled out, with a retest of the psychological 0.9200 resistance, reinforced by its 55-day EMA.”
Technically speaking, consistent with the calculations of Drvenica, the USD/CHF will encounter means of resistance at 0.9155, onto by 0.9200 (key barrier), and 0.9240. On the decline, supportive measures will kick in if the pair moves below 0.9131, then 0.9105, and finally 0.9081.
