USD/CHF hits fresh session low

Haresh Menghani FXStreet

Having posted a session high at 0.9950, the USD/CHF pair erased all of its tepid gains and is currently trading near session low around 0.9920-25 band.

Despite of upbeat US Q3 GDP print, the pair failed to attract fresh buying interest and extended its near-term range-bounce price-action within a broader trading range. The US economy recorded a strong growth in the third quarter and expanded at 2.9%, the fastest pace since mid-2014.

Today's strong US growth numbers reinforced market expectations for an eventual Fed rate-hike action by the end of this year, but failed to provide fresh bullish traction for the greenback. The US Dollar lost some more ground after UoM Consumer Sentiment index for October was revised lower to 87.2, short of expected upward revision to 88.1 from initial estimate of 87.9.

From technical perspective, the pair now seems to be forming a symmetrical triangle on hourly charts and is pointing to near-term consolidation phase before the next leg of directional move.

Technical levels to watch

From current levels, immediate support is pegged around 0.9900 handle below which a fresh leg of downslide is likely to drag the pair towards 0.9880 support before the pair eventually drops to 0.9850 strong horizontal support. On the upside, session peak near 0.9950 is likely to act as immediate hurdle, which if cleared decisively should assist the pair back towards reclaiming parity mark.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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