USDCHF pressures key supports at 0.9870 after weak US data

Slobodan Drvenica Windsor Brokers

USDCHF

The pair trades in red for the second day and probes below the floor of week-long congestion at 0.9870 zone. Near-term bears off 0.9945 (congestion tops) were additionally boosted from weak US durable goods orders data (Sep -1.2% vs 0.3% f/c), pressuring strongly pivotal 0.9870 support zone. Bearishly aligned daily studies favor extension of pullback from 1.0038 peak with sustained break below 0.9870 supports to open way towards next strong supports at 0.9800 zone (Fibo 38.2% of 0.9420/1.0038, reinforced by converged 55/200 SMA's). Underlying bull-trend requires correction to confirm strength, with 0.9800 zone seen s ideal reversal point. Falling 10 SMA which tracks descend in past two weeks, offers solid resistance at 0.9916 (session high) which is expected to cap extended upticks and maintain bearish near-term tone.

Res: 0.9895; 0.9950; 1.0000; 1.0038
Sup: 0.9870; 0.9845; 0.9800; 0.9729

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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