31 August USDCHF Technical Forecast: Bearish pressure remains unabated


The USDCHF pair kept losing ground for the sixth consecutive session and is currently placed at near 4-1/2 month lows, around the 0.9670 region. Is the pair is likely to extend the slide further? Let’s find out from the 31 August USDCHF Technical Forecast.

31 August, OctaFX – Bears, so far, have been able to maintain their dominant position on the last trading day of the week, with a subdued US Dollar price-action doing little to lend any support and stall the ongoing slide to the lowest level since April 19.

The pair’s follow-through weakening trend could also be attributed to some technical selling below the very important 200-day SMA support, which was decisively broken on Wednesday. 

USDCHF Fundamental Highlights

Adding to this, the prevalent cautious mood around equity markets, amid renewed US-China trade tensions, underpinned the Swiss Franc’s safe-haven appeal and kept exerting downward pressure.

Today’s relatively thin US economic docket, highlighting the release of UoM consumer sentiment index, seems unlikely to provide any meaningful impetus, albeit near-term oversold conditions could help limit deeper losses, at least for the time being.

31 August USDCHF Technical Forecast

Immediate support is now pegged near mid-0.9600s, below which the pair is likely to extend the slide towards 0.9625-20 intermediate zone en-route the 0.9600 round figure mark.

On the upside, any recovery attempts might now confront fresh supply near the 0.9700 handle, which if cleared might trigger a near-term short-covering bounce towards mid-0.9700s (200-day SMA).

Disclaimer

This article about 31 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.

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