After an initial uptick to 0.9810 area, the USDCHF pair met with some fresh supply and touched a four-month low level of 0.9785 in the last hour. What is next? Find out in the following 28 August USDCHF Technical Forecast.
28 August, OctaFX – The pair struggled to find any support and remained under some selling pressure for the third consecutive session amid a subdued US Dollar price action.
USDCHF Fundamental Highlights
Against the backdrop of Friday’s dovish sounding comments by the Fed Chair Jerome Powell, flattening of the US bond yield curve kept the USD bulls on the back-foot and did little to provide any respite to the major.
Meanwhile, easing trade-tensions, following a bilateral US-Mexico deal aimed at overhauling the North American Free Trade Agreement boosted investors’ appetite for riskier assets, which eventually dented the Swiss Franc’s safe-haven appeal and helped limit deeper losses, at least for the time being.
In absence of any major market moving economic releases, the USD price dynamics and the broader market risk sentiment might continue to act key determinants of the pair’s momentum through Tuesday’s trading session. Moving ahead, Wednesday’s release of the prelim US GDP growth figures will now be looked upon for some fresh directional impetus.
28 August USDCHF Technical Forecast
A follow-through selling pressure has the potential to continue dragging the pair towards 0.9735 intermediate support en-route the 0.9700 round figure mark. On the flip side, a sustained move beyond 0.9710 area might trigger a short-covering bounce and lift the pair back towards 0.9855-60 supply zone.
This article about 28 August USDCHF Technical Forecast was provided by OctaFX. It should substitute for professional marketing consulting. Forex margin trading involves substantial risks. Forex margin trading exposes participants to risks including, but not limited to, changes in political conditions, economic factors, and other factors. All of which may substantially affect the price or availability of one or more foreign currencies.