Technical analysis of USD/CHF for September 02, 2016
September 2, 2016 4:08 am
USD/CHF is under pressure. The pressure persists after the downside breakout of a bullish trend line since August 29. The downward momentum is further reinforced by its descending 50-period moving average which maintains a bearish bias. In addition, 0.9850 represents a significant resistance, and the upside potential should be limited by this level. On the economic data front, initial jobless claims improved slightly to 263k in week ended August 27th (estimated 265k) from 261k in the previous week. Continuing claims increased to 2.16M in week ended August 20th (forecasted 2.15M) compared to 2.15M in prior week. In other news, Markit U.S. manufacturing PMI logged its lowest reading since June 2016 to 52 in August in a final estimation (estimated 51.1) from 52.1 in a preliminary estimate and 52.9 in July. ISM manufacturing in August fell to 49.4 (forecasted 52) compared with 52.6 in the previous month.
In these prospects, as long as 0.9850 is not broken up, the pair is likely to pull back to test its next support at 0.9760. If breakout occurs, look for further decline to 0.9720.
Resistance levels: 0.9900, 0.9945, 0.9975
Support levels: 0.9760, 0.9720, 0.9685
The material has been provided by InstaForex Company – www.instaforex.com Source: Instaforex.com
USD/CHF is under pressure. The pressure persists after the downside breakout of a bullish trend line since August 29. The downward momentum is further reinforced by its descending 50-period moving average which maintains a bearish bias. In addition, 0.9850 represents a significant resistance, and the upside potential should be limited by this level. On the economic data front, initial jobless claims improved slightly to 263k in week ended August 27th (estimated 265k) from 261k in the previous week. Continuing claims increased to 2.16M in week ended August 20th (forecasted 2.15M) compared to 2.15M in prior week. In other news, Markit U.S. manufacturing PMI logged its lowest reading since June 2016 to 52 in August in a final estimation (estimated 51.1) from 52.1 in a preliminary estimate and 52.9 in July. ISM manufacturing in August fell to 49.4 (forecasted 52) compared with 52.6 in the previous month.
In these prospects, as long as 0.9850 is not broken up, the pair is likely to pull back to test its next support at 0.9760. If breakout occurs, look for further decline to 0.9720.
Resistance levels: 0.9900, 0.9945, 0.9975
Support levels: 0.9760, 0.9720, 0.9685
The material has been provided by InstaForex Company – www.instaforex.com
Source: Instaforex.com
Related Posts: