USDCHF@ 0.9908 - daily neutral – Expects range-bound near term
USDCHF pulled back 61.8% of the October/November 0.9475/1.0328 rise to reach 0.9786 (December 14, 2015 low) before consolidating. Near term the pair is expected to prolong the range-bound action under the 1.0076 resistance area (near the 20 day moving average).
Below 0.9786 lies the key support cluster including the .9675 level (76.4% of the 0.9475/1.0328 rise), the 200 day moving average currently at 0.9648 and the former triangle resistance (now support, as shown on the daily chart). The area should provide a strong foothold for the pair ahead of further upside.
However, a clean breakdown below the aforementioned support cluster would defer the upside and dampen the bullish momentum to weaken towards 0.9475 (October 15, 2015 reaction low) which is near the triangle support.
Outlook:
Intraday: bearish
Daily: neutral
Weekly: neutral
Monthly: bullish
USDCHF pulled back 61.8% of the October/November 0.9475/1.0328 rise to reach 0.9786 (December 14, 2015 low) before consolidating. Near term the pair is expected to prolong the range-bound action under the 1.0076 resistance area (near the 20 day moving average).
Below 0.9786 lies the key support cluster including the .9675 level (76.4% of the 0.9475/1.0328 rise), the 200 day moving average currently at 0.9648 and the former triangle resistance (now support, as shown on the daily chart). The area should provide a strong foothold for the pair ahead of further upside.
However, a clean breakdown below the aforementioned support cluster would defer the upside and dampen the bullish momentum to weaken towards 0.9475 (October 15, 2015 reaction low) which is near the triangle support.
Outlook:
Intraday: bearish
Daily: neutral
Weekly: neutral
Monthly: bullish
