Monday, 31 October 2016

USD/CHF trying to recover

The market’s mood was elevated few minutes before the end of the last week because FBI decided to re-open the investigation into Hillary Clinton’s email case. The time nears to the elections and this is of huge importance to forex markets. 
The USD/CHF pair suffered sharp losses on Friday, having in mind that during the whole past week had downward momentum. The pair bottomed at 0.9857 and formed a falling star pattern, as seen on the daily chart. 
Currently the pair is trading around 0.9892 and bulls are seen attempting to conquer 0.9900 level. Anyway some of Friday’s losses weer partly reversed.
RSI is currently placed withing the mid area, around 53%. Stochastic is showing oversold market and is displaying bearish momentum.
The key resistance is placed now at 1.0000 and in case the pair could push above 0.9900 handle, buying interest might follow and lift the bulls’ desire towards this round number.      
Looking to the downside, the outlook is for testing the 200-day EMA, currently located at 0.9780. First support is seen at 0.9915, which if broken could slide the pair to neutral area with testing 0.9950 or higher.


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