- Last week, USDCHF summed up in a negative zone for the first time in previous three as easing Syrian tensions as well as improvement in economic indicators from the industrial majors induced investors towards riskier assets.
- On Monday, the pair initially traded weaker as former U.S. Treasury Secretary, Larry Summers, an optimist for the US economy, withdrew his candidature from the next Federal Reserve Chairman. Further, the pair witnessed positive sessions in the later part of the day after the release of US Industrial Production.
- The pair is currently trading near 0.9270, below 23.6% Fibonacci Retracement Level of its downturn from 0.9838 to 0.9129.
- From the current level, the pair can witness immediate resistance zone of 0.9295 to 0.9305 (including 23.6% Fibonacci Retracement Level), breaking which the pair is expected to face multiple resistances between 0.9365 to 0.9400 (including 100-day SMA, 200-day SMA and 38.2% Fibonacci Retracement Level).
- If the pair sustains a trade above 0.9400, it is expected to test 0.9480 level.
- On the down side, the pair can witness 0.9230 – 0.9220 support zone, breaking which it is expected to test June 2013 low of 0.9130.
- If the pair continues to trade below 0.9130, it is expected to witness multiple support levels between 0.9030 – 0.9010 support zone.
- To Sum up, the pair has been trading in a negative zone, slowly and gradually indicating June low to test but one should be cautious enough to consider Wednesday’s FOMC decision which would give further insight of medium term movement for the pair.
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