Daily Market Report – USD/CHF Seems Unstoppable August 29, 2017

USD/CHF Drops Like A Rock

Price edges lower and seems too heavy to be stopped by the near term support levels. Is trading in the red as the USD was punished by the USDX’s drop. We have a breakdown in play, but this still needs confirmation.

USD/CHF is pressuring an important static support, a breakdown is imminent at this moment because we don’t have any reversal signs on the dollar index. USDX could decrease further and could reach and retest the 91.91 static support, where he may find strong demand again.

The US dollar needs strong support from the United States economy, otherwise will depreciate further again all its counterparts. The CB Consumer Confidence will be released in the afternoon and is expected to drop from 121.1 to 120.9 points, only an amazing increase will save the USD from the downside.

Price extends the sell-off and approaches the 0.9438 previous low. Will reach this first downside target only if it will stabilize under the 0.9496 horizontal support. USD/CHF broken through the lower median line (lml) of the ascending pitchfork, a retest of the broken level will confirm a further drop in the upcoming period.

Technically was somehow expected to climb towards the upper median line (UML) of the major descending pitchfork after the failure to retest the median line (ML) of the major descending pitchfork, but the buyers weren’t strong enough.

EUR/JPY Facing Tough Resistance

EUR/JPY is trading in the green on the daily chart and tries to reach the 131.40 previous high. A valid breakout above it will confirm a further increase in the upcoming period, but he needs to take out the dynamic resistance from the median line (ml) of the ascending pitchfork as well.

Price rebounded and looks like that the corrective phase is completed, the Yen has lost significant ground only because the Nikkei stock index is narrowing on the short term. A valid breakout above the median line (ml) will confirm that the price is strongly bullish again.

EUR/GBP Extends The Latest Gains

Price resumes the upside movement as the Euro is very strong on the short term. You can see that is trying to climb towards the next upside target from the upper median line (uml) of the ascending pitchfork. The perspective is bullish as long as it is trading within the ascending pitchfork’s body. Could come back to retest the 0.9226 broken static resistance.

By Olimpiu Tuns

Market Analyst

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Source:: Daily Market Report – USD/CHF Seems Unstoppable August 29, 2017