13.09.201616:53 Forex Analysis & Reviews: Technical analysis of USD/CHF for September 13, 2016

Long-term review

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

USD/CHF is under pressure. The pair is bearish below a descending trend line since September 9 and is trading on the downside. The descending 50-period moving average is acting as resistance, which maintains the strong selling pressure. In addition, the relative strength index is below its neutrality area at 50, and lacks upward momentum. Federal Reserve Governor Lael Brainard pointed out that "the case to tighten policy preemptively is less compelling" in view of the current labor market situation. She also said that "today's new normal counsels prudence in the removal of policy accommodation."

Meanwhile, Atlanta Fed Bank President Dennis Lockhart and his Minneapolis counterpart Neel Kashkari also suggested there was no urgency to raise interest rates.

U.S. government bonds showed early weakness with the benchmark 10-year Treasury yield edging down to 1.669% from 1.671% Friday.

To sum up, as long as 0.9760 is not surpassed, look for further downside towards 0.9690 at first; in case of a breakout, look for further decline to 0.9675.

Besides, the relative strength index is still above its neutrality area at 50. Hence, as long as 0.9665 holds on the downside, we are positive and expect a new bounce to 0.9740 and 0.9770 in extension.

Resistance levels: 0.9780, 0.9810, 0.9850

Support levels: 0.9690, 0.9675, 0.9610

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.