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20 Feb 2014
USD/CHF facing headwinds
FXStreet (Guatemala) - USD/CHF had rallied from 0.8860 and onto the 0.89 handle reaching a high of 0.8916 but the pair is struggling to hold on.
USD/CHF has been bid, however, there has been a change of direction since the dollar had been performing well on a surprisingly robust Markit Manufacturing PMI for Feb read 56.7 vs 53.0 and 53.7 previous. Consumer confidence disappointed at -12.7 vs -11.25 consensus and also the Philly Fed came in lower at -6.3 vs a consensus of 8.0. The pair is facing downward pressures again and testing areas back below 0.8900. Karen Jones, chief analyst at Commerzbank explained “The market will need to overcome its short term downtrend, this is located today at 0.8987 in order to alleviate downside pressure and re-target .9038 then 0.9082 (3rd February high) and only above 0.9082 will retarget the 0.9164 Fibonacci retracement”.
USD/CHF Levels
The 20 DMA is 0.8972, the 50 DMA is 0.8984 and the 200 DMA is 0.9191. RSI (14) reads 58.79. Supports are ascending from 0.8766, 0.8790, 0.8830 and 0.8856. Spot is 0.8890 while resistances are 0.8903, 0.8929, 0.8949 and 0.8974.
USD/CHF has been bid, however, there has been a change of direction since the dollar had been performing well on a surprisingly robust Markit Manufacturing PMI for Feb read 56.7 vs 53.0 and 53.7 previous. Consumer confidence disappointed at -12.7 vs -11.25 consensus and also the Philly Fed came in lower at -6.3 vs a consensus of 8.0. The pair is facing downward pressures again and testing areas back below 0.8900. Karen Jones, chief analyst at Commerzbank explained “The market will need to overcome its short term downtrend, this is located today at 0.8987 in order to alleviate downside pressure and re-target .9038 then 0.9082 (3rd February high) and only above 0.9082 will retarget the 0.9164 Fibonacci retracement”.
USD/CHF Levels
The 20 DMA is 0.8972, the 50 DMA is 0.8984 and the 200 DMA is 0.9191. RSI (14) reads 58.79. Supports are ascending from 0.8766, 0.8790, 0.8830 and 0.8856. Spot is 0.8890 while resistances are 0.8903, 0.8929, 0.8949 and 0.8974.