It looks like position-squaring ahead of the weekend was dominating the FX market Friday morning in Europe as there were no major indicators to determine direction. The dollar was unchanged (AUD, GBP) to lower against all the other G10 currencies compared with its opening levels. The biggest gainer this morning was NOK, one of the biggest losers on the week (-1.4% vs USD compared with last Friday as of this morning’s opening in Europe). CHF gained more than JPY, which is probably being depressed by the improved risk sentiment – all the major European bourses except Spain are higher this morning and S&P 500 futures are up a bit further even after yesterday’s sharp rise. The U of Michigan consumer sentiment survey for October, due out later today, may give some direction to the market but who would be surprised by a fall in sentiment now? Even I’m depressed about what’s going on in the US and I live in Europe!
USD/CHF has been moving in an uptrend since the 3rd of October. However, during the last trading hours the pair fell sharply, breaking below the 0.9095 support (current resistance) and signaled the completion of a two-day head and shoulders reversal formation. At the time of writing the rate is testing the 0.9075 (S1) support barrier which coincides with the 200-hour moving average reading. A decisive violation below the aforementioned key level will have larger bearish implication and would target the blue uptrend line and the 0.9060 (S2) floor. Short term studies favor such a break, since the MACD and the RSI both follow downward paths.
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Disclaimer: This information is not considered as investment advice or investment recommendation but instead a marketing communication. This material has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research. IronFX may act as principal (i.e. the counterparty) when executing clients’ orders. This material is just the personal opinion of the author(s) and client’s investment objective and risks tolerance have not been considered. IronFX is not responsible for any loss arising from any information herein contained
Past performance does not guarantee or predict any future performance. Redistribution of this material is strictly prohibited. Risk Warning: Forex and CFDs are leveraged products and involves a high level of risk. It is possible to lose all your capital. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent advice if necessary. IronFx Financial Services Limited is authorised and regulated by CySEC (Licence no. 125/10). IronFX UK Limited is authorised and regulated by FCA (Registration no. 585561). IronFX (Australia) Pty Ltd is authorized and regulated by ASIC (AFSL no. 417482)
USD/CHF has been moving in an uptrend since the 3rd of October. However, during the last trading hours the pair fell sharply, breaking below the 0.9095 support (current resistance) and signaled the completion of a two-day head and shoulders reversal formation. At the time of writing the rate is testing the 0.9075 (S1) support barrier which coincides with the 200-hour moving average reading. A decisive violation below the aforementioned key level will have larger bearish implication and would target the blue uptrend line and the 0.9060 (S2) floor. Short term studies favor such a break, since the MACD and the RSI both follow downward paths.
- Support: 0.9075 (S1), 0.9060 (S2), 0.9044 (S3)
- Resistance: 0.9095 (R1), 0.9129 (R2), 0.9147 (R3)
USD/CHF" width="1732" height="814" />Disclaimer: This information is not considered as investment advice or investment recommendation but instead a marketing communication. This material has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research. IronFX may act as principal (i.e. the counterparty) when executing clients’ orders. This material is just the personal opinion of the author(s) and client’s investment objective and risks tolerance have not been considered. IronFX is not responsible for any loss arising from any information herein contained
Past performance does not guarantee or predict any future performance. Redistribution of this material is strictly prohibited. Risk Warning: Forex and CFDs are leveraged products and involves a high level of risk. It is possible to lose all your capital. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent advice if necessary. IronFx Financial Services Limited is authorised and regulated by CySEC (Licence no. 125/10). IronFX UK Limited is authorised and regulated by FCA (Registration no. 585561). IronFX (Australia) Pty Ltd is authorized and regulated by ASIC (AFSL no. 417482)