19 Jan 2015
USD/CHF en-route to test key 0.87 resistance
FXStreet (Bali) - Following the massacre of CHF shorts last Thursday Jan 15, when the SNB decided to remove the EUR/CHF 1.20 peg, USD/CHF has continued to trade volatile as per Asian standards, with the rate opening up at 0.8608 and hitting a session high of 0.8672.
The rebound in Asia extends USD's gains from a low of 0.8454 found in the last US session, as market participants of all likes continue to adjust positions. USD/CHF is presently trading at its lowest level since Sept 2011, with the 0.87 handle a key resistance now.
Technically, the H1 chart shows price picking up momentum now above the 20 EMA, with offers expected to emerge overhead in anticipation of 0.87 protection and as some tech players may find the rise as an opportunity to sell on an hourly triangle pattern not yet matured.
The rebound in Asia extends USD's gains from a low of 0.8454 found in the last US session, as market participants of all likes continue to adjust positions. USD/CHF is presently trading at its lowest level since Sept 2011, with the 0.87 handle a key resistance now.
Technically, the H1 chart shows price picking up momentum now above the 20 EMA, with offers expected to emerge overhead in anticipation of 0.87 protection and as some tech players may find the rise as an opportunity to sell on an hourly triangle pattern not yet matured.