Daily Market Report – USD/CHF crucial breakout in play October 03, 2017

USD/CHF At New Highs

The currency pair increased further and resumed the upside movement. Is trading in the green and looks poised to take out a major resistance level. USD/CHF increases further as the USDX resumed the yesterday’s impressive bullish candle. The USDX has managed to jump above the 93.68 previous high and now is trading above the 93.81 horizontal resistance. A valid breakout will confirm a larger rebound in the upcoming weeks and a USD dominance.

The USDX is expected to increase further as the Federal Reserve is expected to hike the rate in December.

The USD/CHF will be driven by the technical factors today, the US is to release only the Total Vehicle Sales indicator, which is expected to increase from 16.1M to 16.9M, but remains to see if will have any impact.

Price is pressuring the upper median line (uml) of the descending pitchfork. Has jumped above this dynamic resistance, but remains to see if will really have a valid breakout. USD/CHF has managed to come back above the up sloping red line, signaling that the bulls are very strong on the short term.

I’ve drawn an ascending pitchfork to catch a larger upside movement, you can see that the median line (ml) represents a very strong resistance level, it was rejected several times in the last weeks. Price could increase further even if will stay under this dynamic resistance.

USD/CAD Breakout Expected

USD/CAD increases further on the short term and is almost to hit the upper median line (uml) of the descending pitchfork. Technically, it should take this out if will reach it. A valid breakout will confirm an increase at least till will reach the 1.2678 and the median line (ML) of the major descending pitchfork.

NZD/USD Accelerates The Sell-Off

The NZD/USD drops further on the short term and is almost to hit the fifth warning line (wl5) of the ascending pitchfork. I’ve said in the previous week that the rate should take out the warning line (wl5) if will reach it. Technically, it should drop further after the retest of the sliding line (sl).

By Olimpiu Tuns – Market Analyst

I graduated a Master in Business Administration, I am a Market Analyst / Trader on Financial Markets (forex, commodities, futures, options) for more than 6 years, I use technical and fundamental analysis for my daily activity. Founder and Market Analyst at ovtbusiness.com (Financial Markets Blog) and contributor on investing.com, actionforex.com, countingpips.com, forexalchemy.com, etc.

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