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USDCHF Possible Short 10-January-2018
Market approaching 4hr Trendline, Elliot wave rebound and possible short back to support levels located at 0.98
USD/CHF reverses sharply from 3-month lows, rises back above 0.98
Swiss franc among worst performers on Thursday.
USD/CHF up more than a hundred pips from daily lows.
The USD/CHF pair rose further during the US session driven mainly by a weaker Swiss franc. Also, a correction of the US dollar against European currencies helped the pair moved to the upside.
The last run higher took place during Jerome Powell’s presentation and also comments from other Fed’s officials speaking in favor of a pause in the rate hike cycle.
USD/CHF Levels to watch
To the upside the next resistance level might be seen at 0.9850, above the key to watch is the 20-day moving average at 0.9880. A daily close significantly on top would add more strength to the US dollar suggesting a recovery on top of 0.9900. On the flip side, the immediate support might be located at 0.9820, followed by 0.9785/90 (Dec 28, Jan 7 low).
Analysts at Commerzbank noted that EUR/USD is consolidating in the main and remains well placed to challenge and break above the 1.1500 resistance
“Dips lower are expected to remain well supported by the 1.1300 – 1.1267 end of November low and we favour an eventual retest of the 1.1500 region. The market faces tough overhead resistance in the 1.1500 zone but upside risks are growing longer term and a close above here (preferably a weekly close) would trigger a recovery to the 1.1623 October high and the 1.1632 200 day ma. Slightly longer term we target 1.1795, the 55 week ma.”
Market approaching 4hr Trendline, Elliot wave rebound and possible short back to support levels located at 1.27.
10 January 2019 16:39 GMT
GBP/USD rebounds but continues to be unable to break 1.2800
Cable trims losses as the pound gains momentum, but positive momentum eases at 1.2780.
US dollar looks weak on Fed rate expectation and the pound vulnerable on Brexit and UK politics.
Levels to watch
The GBP/USD pair continues to consolidate near December and January highs but in order to clear the way to more gains it needs to break and hold on top of 1.2800. A rally without some Brexit clarification seems unsustainable and vulnerable to reversals.
The failure to break above 1.2800 is starting to affect technical indicators, that are slowly turning to the downside. A firm break under 1.2740 would point to more losses in the short-term with a potential target at 1.2720. Below that level attention would turn to the 1.2700 support zone.