25 Jul 2013
USD/CHF stuck in bearish short-term posture despite Wednesday’s bounce
FXstreet.com (Barcelona) - The USD/CHF is easing lower in early Thursday trading after a sharp, data-induced rally Wednesday and ahead of market-moving US data on Thursday.
USD/CHF at the mercy of important economic data Thursday
Traders will have to contend with Durable Goods data and Weekly Jobless Claims numbers in the US at 12:30 GMT. Both numbers have the juice to move interest rates and the US Dollar and USD/CHF if surprises occur in either direction.
Technical outlook for USD/CHF
Technicians have been calling for a continued move lower in the USD/CHF – down to 0.9208 according to Tim Thielen, CMT and author of The Sea Change Report. However, the cross is sporting a short-term oversold condition according to multiple indicators – so bounces / rallies are to be expected. Short-term resistance comes in at Tuesday’s high of 0.9406 and is followed by the 7/18 peak at 0.9477. Support for USD/CHF comes in at Monday’s low at 0.9321 and is backed up by key correction support at 0.9208.
USD/CHF at the mercy of important economic data Thursday
Traders will have to contend with Durable Goods data and Weekly Jobless Claims numbers in the US at 12:30 GMT. Both numbers have the juice to move interest rates and the US Dollar and USD/CHF if surprises occur in either direction.
Technical outlook for USD/CHF
Technicians have been calling for a continued move lower in the USD/CHF – down to 0.9208 according to Tim Thielen, CMT and author of The Sea Change Report. However, the cross is sporting a short-term oversold condition according to multiple indicators – so bounces / rallies are to be expected. Short-term resistance comes in at Tuesday’s high of 0.9406 and is followed by the 7/18 peak at 0.9477. Support for USD/CHF comes in at Monday’s low at 0.9321 and is backed up by key correction support at 0.9208.