USD/CHF: Correction May Continue
LiteForex Europe | Nov 25, 2015 07:02AM ET
Today, the US dollar continued its decline during the Asian session, but the dynamics has changed since the opening of the European session. The US currency is declining against the Swiss franc, but strengthening against its other counterparts. If the USD continues growing during the European session, the USD/CHF pair is likely to be back to its upward trend as well.
Amid a slowdown in Swiss economic growth, Swiss National Bank tends to keep its loose monetary policy that will affect the growth in the CHF against the USD.
Today, market participants are waiting for a block of news releases, due in the US.
Since the opening of the trading week, the USD/CHF pair has lost about 50 points. The price has corrected down to the support level of 1.0150 (EMA144 on the hourly chart) and has almost reached the level of 1.0130 (EMA50 and the lower border of an upward channel on the 4-hour chart).
OsMA and Stochastic on the 4-hour and daily charts recommend short positions that suggests continuation of a downward correction.
Though the USD/CHF pair is overbought and is at its year highs, the price still has growth potential until the level of 1.0600 (EMA144 on the monthly chart) is reached.
Support levels: 1.0130, 1.0000, 0.9880, 0.9800.
Resistance levels: 1.0200, 1.0240, 1.0300.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.