The technical look for the pair is no different from where we were here yesterday. The drop earlier in the week brings into focus key technical support near the 200-day moving average (blue line). And that is still where we are now ahead of the ECB and more US data later in the day.
The pair moved down on Tuesday to test the 200-day moving average, alongside the 61.8 Fib retracement level at 0.8883. That saw the drop get arrested, before a minor bounce yesterday. The bounce itself then stalled at the 100-day moving average (red line), which allowed sellers to push price back lower today.
It’s now a battle in between these two levels in identifying what will come next for USD/CHF.
Break below the key support region highlighted, and there is much room to run to the downside. On the flip side, break back above the 100-day moving average, and that is an opportunity for buyers to wrestle back some control after the break under 0.9000.
The potential trigger events today are the ECB and the US weekly jobless claims later today. If that doesn’t move the needle in USD/CHF, it will be over to the US jobs report tomorrow to settle the score.
This article was written by Justin Low at www.forexlive.com.
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