Friday, 12 May 2017

USD/CHF tested the support at 200-day SMA

The USD/CHF pair slipped below the parity line having lost around 80 pips. The US Dollar is seen weaker today against its major rivals following the release of weak economic data in the United Stated and FOMC’s dovish tone. The pair tested the levels around the 200-day SMA, which is located at 1.0000 – 0.9995, but later corrected and the current market price is 1.0019.

On the four-hour time frame the price has crossed to below the 20-day SMA, which is currently staying flat at around 1.0068 and has lost directional strength. RSI and stochastic are showing strong bearish momentum and had moved below their mid-lines. 
In case of closing below the 200-day SMA (1.0000 – 0.9995), the pair will poised to extend its downward slope towards 0.9960. Looking to the upside first resistance is seen at 1.0085 (today’s high) and second at 1.0100 (weekly’s high). 


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