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19 Feb 2014
USD/CHF testing the channel line support
FXStreet (Barcelona) - USD/CHF is testing the support of the channel within a 30-pip range as the pair consolidates the 78.6% retracement from 0.8930.
USD/CHF has yet to register a close below the support and as Karen Jones, chief analyst at Commerzbank explained, “All of the intraday Elliott wave counts are implying between here and approximately 0.8850 we should see the market attempt to base, but as yet there is no sign of it.” She added, “The market will need to overcome its short term downtrend, this is located today at 0.8995 in order to alleviate downside pressure and re-target 0.9038 then 0.9082 (3rd February high) and only above 0.9082 will retarget the .9164 Fibonacci retracement. Slightly longer term we look for the market to stabilise ahead of the 0.8800 recent low and recover”.
USD/CHF Levels
The 20 DMA is 0.8984, the 50 DMA is 0.8983 and the 200 DMA is 0.9195. RSI (14) reads 38.22. Supports are ascending from 0.8766, 0.8795, 0.8830 and 0.8860. Spot is 0.8870 while resistances are 0.8885, 0.8909, 0.8929 and 0.8949.
USD/CHF has yet to register a close below the support and as Karen Jones, chief analyst at Commerzbank explained, “All of the intraday Elliott wave counts are implying between here and approximately 0.8850 we should see the market attempt to base, but as yet there is no sign of it.” She added, “The market will need to overcome its short term downtrend, this is located today at 0.8995 in order to alleviate downside pressure and re-target 0.9038 then 0.9082 (3rd February high) and only above 0.9082 will retarget the .9164 Fibonacci retracement. Slightly longer term we look for the market to stabilise ahead of the 0.8800 recent low and recover”.
USD/CHF Levels
The 20 DMA is 0.8984, the 50 DMA is 0.8983 and the 200 DMA is 0.9195. RSI (14) reads 38.22. Supports are ascending from 0.8766, 0.8795, 0.8830 and 0.8860. Spot is 0.8870 while resistances are 0.8885, 0.8909, 0.8929 and 0.8949.