Yahoo Finance Morning Market Update – USD/CHF
A further fall is still in favor on USD/CHF pair for support. The pair is trading with the 1.0042 resistance intact and has been rejected at this level. The pair’s outlook remains bearish. Breaking of the pair at 0.9969 level will resume medium term fall from the current levels and target next long term at the 0.9947 level. However, a firm break of the 1.0042 level will indicate trend reversal and turn outlook bullish.
Looking at the bigger picture, the current development suggests that the 1.0042 key resistance levels could not be taken out firmly as down trend form levels look to extend. There are various interpretations of the price actions. But, the medium term outlook will stay bearish as long as the 1.0042 resistance level holds. The pair’s down trend could extend to the 0.9947 level. However, breaking of resistance will indicate that the pair has successfully defended again and will turn the outlook bullish for new highs.
The dollar after the good run seems to break after the rally last week and continues to rise away as President Trump nominated Jerome Powell, a current Fed governor, as the next Fed Chair. The down days are seen by some bear candles with pair struggling to make any headway and will turn in effect into consolidation days. The current bearish candle was another indication where the bears come into picture again and bulls failed to make any sustainable impact before once more resuming the decline in session to come. The daily momentum indicators have all now taken on a corrective outlook with the stochastic falling below the 50 level and the lines having crossed lower. The pair is now into the old pivot band so it will be interesting to see the reaction. The pair’s likelihood is that the support level which has often been seen as an inflection point will now be tested. The four hourly chart shows the resistance at the 1.0014 level is bolstered now as a key level, with initially an area of near term overhead supply. The pair shows more sideways trading that settle near the resistance as the price keeps its stability below this level. This keeps the negative pressure valid for the upcoming period waiting to be tested. This reminds you that breaking at this level is required to confirm extending the bearish wave towards the 0.9947 followed by 0.9924 levels.
Therefore, we will continue to suggest the bearish trend for today unless we witnessed clear breach and hold with a daily close above the 1.0042 level.
The pair’s expected trading range for today is between the 0.9947 support and 1.0014 resistance levels.
Expected trend for today: Bearish
For more detailed analysis from the author, please visit NoaFX.
This article was originally posted on FX Empire
More From FXEMPIRE:
DAX Index Price Forecast November 3, 2017, Technical Analysis
E-mini Dow Jones Industrial Average (YM) Futures Analysis – November 3, 2017 Forecast
Oil Price Fundamental Daily Forecast – Early Support from Increased Demand
Price of Gold Fundamental Daily Forecast – May Need Weak Labor Data to Extend Rally
