30 Dec 2013
USD/CHF hovering above 0.8900
FXstreet.com (Córdoba) - The USD/CHF is taking a breather, consolidating in a narrow range around 0.8900 Monday, after slumping to a 2-year low of 0.8800 last Friday.
The USD/CHF dropped more than 150 pips Friday and printed a low of 0.8800 but bounced strongly and trimmed losses as the dollar recovered ground across the board during the American afternoon. The USD/CHF finally settled above 0.8900 where it has spent most of the day. At time of writing, the USD/CHF is trading at 0.8905, little changed since opening.
USD/CHF technical outlook
"Although USD/CHF plunged more than 150 pips on Dec 27, it recovered most of the losses the same day and managed to settle above the monthly S2", says the Dukascopy Bank Team. "At the moment the pair is challenging 0.8930 and in case of success may set a new objective at 0.8991/75, where the six-month down-trend resistance merges with the monthly S1, a fact that makes a breach of this area a low-probability event".
The USD/CHF dropped more than 150 pips Friday and printed a low of 0.8800 but bounced strongly and trimmed losses as the dollar recovered ground across the board during the American afternoon. The USD/CHF finally settled above 0.8900 where it has spent most of the day. At time of writing, the USD/CHF is trading at 0.8905, little changed since opening.
USD/CHF technical outlook
"Although USD/CHF plunged more than 150 pips on Dec 27, it recovered most of the losses the same day and managed to settle above the monthly S2", says the Dukascopy Bank Team. "At the moment the pair is challenging 0.8930 and in case of success may set a new objective at 0.8991/75, where the six-month down-trend resistance merges with the monthly S1, a fact that makes a breach of this area a low-probability event".