USD/CHF - 0.8879.. Although dlr extended decline fm Tue n fell to 0.8850 at European open, price found renewed buying n rose to 0.8889 on usd's strength b4 retreating to 0.8856 on selling in eur/chf cross.

On the bigger picture, despite dlr's rally fm Sep's bottom at 0.8999 to 0.9296 in late Sep, subsequent erratic fall to 0.9031 n Nov's brief break of 0.8999 to a fresh 5-1/2 year 0.8983 low due to usd's broad-based weakness signals LT downtrend fm 2016 peak at 1.0344 has once again resumed. Although dlr staged a rally to 0.9192 in Nov due to strg rise in U.S. yields, subsequent fall n then break of said Nov's bottom to 0.8758 last week signals price is en route to 0.8718, 'bullish convergences' on daily indicators may keep price abv 0.8646/ 56 n yield a correction. On the upside, a daily close abv 0.8983 signals low is made n risks stronger retracement twd 0.9093, then 0.9192.

Today, despite dlr's retreat fm Mon's near 5-week high at 0.8920 to 0.8850 y'day, subsequent rebound to 0.8889 suggests pullback has possibly ended n consolidation with upside bias remains for gain to 0.8946, anticipated bearish divergences should cap price below 0.8983. Below 0.8848/50 risks 0.8821/23.

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AceTrader Team

AceTrader

Led by world-renowned technical analyst Wilson Leung, we have a team of 7 analysts monitoring the market and updating our recommendations and commentaries 24 hours a day.

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