- The overnight rejection slide from 200-DMA extends through the early NA session on Friday.
- Stronger US headline retail sales data helped limit the slide/bounce off over one-week lows.
The USD/CHF pair extended the previous session's rejection slide from the very important 200-day SMA and remained under some selling pressure for the second consecutive session on Friday. The intraday downfall dragged the pair to over one-week lows in the last hour, albeit stronger US headline retail sales figures helped bounce off lows and recover a part of the early lost ground.
Meanwhile, technical indicators on hourly charts have been gaining negative traction and also easing within the positive territory, suggesting that the recent up-move might have run out of the steam. However, the broader picture indicates that the pair remains well within a six-week-old ascending trend-channel formation and warrant caution before positioning for any further near-term depreciating move.
Hence, any subsequent fall seems more likely to attract some dip-buying interest and help limit the downside near the lower end of the mentioned trend-channel, currently around the 0.9815-10 region. Failure to defend the said support will negate the constructive outlook and set the stage for the resumption of the prior bearish trend, turning the pair vulnerable to aim back towards the 0.9700 handle.
On the flip side, the 0.9915 region now seems to act as an immediate resistance, above which the pair is likely to make a fresh attempt towards challenging 200-DMA - currently near mid-0.9900s. Any further up-move is likely to confront some supply near the trend-channel resistance, which if cleared should pave the way for an extension of the pair's recent strong up-move from multi-month lows.
USD/CHF daily chart
-637039807348604964.png)
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD hovers around 1.0700 after German IFO data
EUR/USD stays in a consolidation phase at around 1.0700 in the European session on Wednesday. Upbeat IFO sentiment data from Germany helps the Euro hold its ground as market focus shifts to US Durable Goods Orders data.
USD/JPY refreshes 34-year high, attacks 155.00 as intervention risks loom
USD/JPY is renewing a multi-decade high, closing in on 155.00. Traders turn cautious on heightened risks of Japan's FX intervention. Broad US Dollar rebound aids the upside in the major. US Durable Goods data are next on tap.
Gold price trades with mild negative bias, manages to hold above $2,300 ahead of US data
Gold price (XAU/USD) edges lower during the early European session on Wednesday, albeit manages to hold its neck above the $2,300 mark and over a two-week low touched the previous day.
Worldcoin looks set for comeback despite Nvidia’s 22% crash Premium
Worldcoin price is in a better position than last week's and shows signs of a potential comeback. This development occurs amid the sharp decline in the valuation of the popular GPU manufacturer Nvidia.
Three fundamentals for the week: US GDP, BoJ and the Fed's favorite inflation gauge stand out Premium
While it is hard to predict when geopolitical news erupts, the level of tension is lower – allowing for key data to have its say. This week's US figures are set to shape the Federal Reserve's decision next week – and the Bank of Japan may struggle to halt the Yen's deterioration.