USDCHF Technical Outlook


From the 28 December USDCHF Technical Outlook, the pair is flirting with lows, near 0.9800 handle ahead of US data as persistent USD weakness exerts downward pressure for the second straight session. Find out more.

28 December, GKFX– The USDCHF pair maintained it’s heavily offered tone and is currently placed at 3-1/2 week lows, around the 0.9800 handle.

Key Quotes

   •  Persistent USD weakness exerts downward pressure for the second straight session.

   •  The cautious environment provides an additional boost to CHF’s safe-haven appeal.

   •  Bulls trying to defend important MAs confluence support ahead of US data.

The pair extended overnight retracement from the 0.9900 handle and remained under intense selling pressure for the second consecutive day on Thursday. Despite a goodish pickup in the US Treasury bond yields, the US Dollar bulls held on the back-foot and kept exerting some downward pressure on the pair.

Adding to this, the prevalent cautious environment around equity markets further underpinned the Swiss Franc’s safe-haven appeal and collaborated to the pair’s sharp retracement through the mid-European session.

The downfall now seems to have abated, at least for the time being, with the pair finding some support just ahead of the very important 200-day SMA as traders now look forward to the second-tier US economic releases for some fresh impetus.

Hence, traders are likely to wait for a decisive breakthrough important moving averages (200 & 100-day SMA) confluence support near the 0.9785-80 region before positioning for any further near-term downside.

28 December USDCHF Technical Outlook

A clear break below the mentioned support is likely to accelerate the fall towards monthly lows support near 0.9735 level before the pair eventually drops to test the 0.9700 handle.

On the upside, any recovery attempts might now confront fresh supply near the 0.9830 region, above which a bout of short-covering could lift the pair towards 0.9860 horizontal resistance ahead of the 0.9900 handle.

Disclaimer

This article “28 December USDCHF Technical Outlook ” was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.

If such information is acted upon by you then this should be solely at your discretion and GKFX will not be held accountable in any way.

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