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).
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