USD/CHF Still In The Buyer’s Territory
The currency pair plunged after the yesterday’ impressive increase and retested a dynamic support. Price squeezed in the last hours and it seems determined to stay higher and to resume the upside movement. USD/CHF has found temporary resistance, but maintains a bullish perspective on the short term because is located above some very important support levels. The dollar has taken the lead again in the second part of the day as the USDX has managed to increase and to erase some of the today’s losses.
The Swiss Franc increased today even if the Switzerland Retail Sales have dropped unexpectedly, the indicator dropped by 0.4%, even if the traders have expected to see a 0.3% growth.
You can see that the rate has come and retested the 250% Fibonacci line, but failed to stay there and now seems motivated to close the day much above this line and above the 0.9973 static support. I’ve said in the yesterday’s report that the rate could retest the median line (ml) before will climb much higher, but has failed once again, signaling that the bulls could take the lead very soon.
Gold Still Under Pressure
The yellow metal increased today and resumed the yesterday’s bullish candle, but failed to stay near the 1284 today’s high and now is located below the sliding line (SL) of the ascending pitchfork. This could be only a retest of the broken support levels before will drop much deeper. Gold will drop only if the USDX will have enough directional energy to climb much higher.
NZD/USD Rebound In Play, But For How Long?
The rate increased and resumed the bounce back movement as the USDX has slipped lower today. Price is almost to reach the median line (ml) of the minor descending pitchfork, where he may find resistance again. A failure to reach the mentioned level or a rejection will send the price tumbling in the upcoming period. Could also retest the wl6 of the former ascending pitchfork before will drop again. A further increase will come if will breakout above the median line (ml) of the minor descending pitchfork and if will stabilize above the 0.6885 level.
By Olimpiu Tuns – Market Analyst