
It has been a rough four sessions for USD/CHF bulls, with rates falling more than 90 pips on consistent selling. This market has been dominated by the bears amid a resurgence in the safe-havens. While the daily uptrend that began on August 13 is still technically valid, it is undergoing a stiff challenge.
A little past 10:00 AM EST, lagging Consumer Confidence and Richmond FED Manufacturing reports were released to the public. Both came as a modest surprise to the markets and prompted a shift in equities and safe-haven action.
For the time being, what once looked like a positive day on Wall Street is turning negative. Subsequently, gold has posted an intraday buy-back and the USD/CHF is continuing its slide to the bear.
USD/CHF Challenges Daily Uptrend
Since the August 13th rally, the USD/CHF put together a net gain of just over 175 pips. Now, it appears that the party may be over and rates headed back down to earth.
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Here are the levels to watch in this market for the remainder of the session:
- Resistance(1): Daily SMA, .9913
- Support(1): Bollinger MP, .9878
Overview: At press time (about 11:20 AM EST), the USD/CHF is just off intraday lows near .9875. A short term bounce has developed from the Bollinger MP, which is a key area of downside support. If the .9875 area is taken out, a sizeable bearish run may be in store for midweek trade. Given the sparsely populated U.S. economic calendar, the USD/CHF may be in a position to grind south until Thursday’s Q2 GDP report.