USD CHF tries a tepid improvement
9/2/2016 11:03:15 AM
Following Thursday's sharp reversal, the USD/CHF pair tried a tepid recovery and is currently trading around 0.9800 handle as traders stay for the upcoming fickleness led by US monthly employment details. Today's release of NFP release would be saw upon for simplicity over the Federal Reserve's near-term monetary policy stance, which would finally help investors to define the dollar's near-term trajectory. On Thursday, the major turned suddenly lower and fell over 100-pips from a multi-week high level of 0.9880, breaking its 9-days of winning streak on unsatisfactory release of US ISM manufacturing PMI, which dropped into contraction territory in August. The pair once again failed to hold its move above 200-day SMA and therefore, a follow through selling pressure below 50-day/100-day SMAs immediate supports would turn the pair at risk to expand its slide in the near-term. On the upside, 0.9825 seems to act as immediate persistence above which the pair is likely to make a fresh effort to regain 0.9900 handle with 0.9870 acting as intermediate persistence. Meanwhile on the downside, weakness below 0.9780 seems to find support near 0.9760 (50-day SMA), which is closely followed by 100-day SMA support near 0.9740 region. A convincing break below 100-day SMA support now seems to turn the pair vulnerable to extend its downslide in the near-term.
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