FXOpen
Suggestion for Trade: Buy at 0.8860-0.8865, Stop Loss at 0.8840, Target 0.8990
USD/CHF yesterday bounced off from 0.88499 (61.8% fib level of last major move) and gave daily closing at 0.8872.
Major Support & Resistance Levels
At the moment in Asian session, the pair is around 0.8876 where it is likely to find an immediate support around 0.8860-0.8850 area, a break and close below this level may open doors for 0.8800 (trendline support) and then 0.8509 (50%fib level).
.png)
On upside, the pair may find resistance at 0.8900 (psychological level + hourly 55 MA) ahead of 0.8931 (hourly 100 MA) and then 0.8994 (55 MA on 4 hour chart).
Technical Indicators
MACD is bullish and positive divergence can also be seen on hourly timeframe. Relative Strength Index (RSI) is in oversold territory on daily timeframe which suggests a correction might be in play soon.
Fundamental Situation
Tuesday's U.S. budget deal, which downplays the risk of another government shutdown, has removed one element of uncertainty that it boosts the likelihood of the Federal Reserve beginning to taper asset purchases at its meeting on December 17-18, which could give rise to market volatility in the near-term, CNBC citing strategists reported on Wednesday.
Though US dollar seems under pressure despite tapering speculations, however, this deal shows that things are still very much in favor of US dollar and it should be a matter of relief for all USD pairs. Today US Treasury Sec Law is also scheduled to speak in US session.
Tomorrow Swiss National Bank (SNB) is to hold an important press conference during London session followed by benchmark interest rate decision, traders dealing in CHF pairs will be monitoring this development carefully.
Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Stay ahead of the market!
Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.
Latest articles
Apple (AAPL) share price slips towards psychological $200 level
Yesterday, Apple shares (AAPL) fell by 2.5%, edging closer to the key psychological threshold of $200. Moreover, the stock is underperforming the broader market, which reached new highs earlier this week — a move AAPL has yet to replicate.
Why
Bitcoin Hits All-Time High, Surges Above $110K
As shown on the BTC/USD chart, the Bitcoin price has broken above the $110K mark, setting a new all-time high around $111,800.
This move highlights the strength of the leading cryptocurrency, which has surged nearly 50% in just
The US Dollar May Revisit Year-to-Date Lows
Currency pairs such as USD/CAD and USD/JPY continue to trend lower, approaching their year-to-date lows. The decline in the dollar is largely driven by growing investor concerns over the fiscal sustainability of the United States and uncertainty surrounding