FXstreet.com (Barcelona) - The USD/CHF has continued its downward path throughout both Asian and European trading, following an easing off of an overnight high that was contained in the region of 0.9485. In recent moments however, the pair has bounced over 10 pips off of its intraday minimum (0.9426), before ultimately settling at 0.9434/35. At this juncture, the cross is operating at a -0.15% loss on the day.

“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.