According to Slobodan Drvenica, an analyst at Windsor Brokers Ltd., “The USD/CHF reversed from session’s fresh high at 0.9436, following a brief break above the important 0.9400 resistance zone, as hourly studies entered overbought territory. Near-term bulls remain in play while above trendline support at 0.9350, however, weakening hourly studies and loss of bullish momentum see risk of further weakness, with break below 0.9350.”
At this juncture, the cross has suffered a sizable decline of -0.37% on the day. In terms of the technical levels, Drvenica has isolated the next supports at 0.9373, 0.9350, and finally 0.9334. However, a prolonged upward movement will initiate resistive means at 0.9400, then 0.9416, and 0.9436.
Investors will have ample time to digest an array of myriad economic indicators and announcements today out of the United States, which should dictate sentiment across the board – more specifically, manufacturing data and PMIs constitute an afternoon focus.