“An overall bullish tone remains intact, as an upside rejection at 0.9500 and subsequent pullback found ground at the important 0.9400 support, where the USD/CHF’s 200-day MA contained dips. However, as fresh gains failed to regain 0.9500 handle, softer near-term studies still see risk of possible retest of 0.9400.” warns the Slobodan Drvenica, an analyst at Windsor Brokers Ltd.
According to Slobodan Drvenica, a loss of the 0.9400 mark would trigger stronger correction of the 0.9213/0.9511 upleg – before this level however, the pair must first pass through calculated support at 0.9435. Conversely, a lift above last Friday’s high at 0.9489 would re-focus 0.9500/11 and improve the near-term tone.
In the EMU, Construction Output s.a. (MoM) was reported at -1.4% in September, compared with a previous figure of 0.7%. Moreover, Construction Output w.d.a. (YoY) came in at -2.6% in September, relative to a result of -5.5% previously.