The pair has confirmed its reversal from Tuesday’s high at 0.9225 weighed by broad-based US dollar weakness. The decline in US T-Bond yields, which have fueled USD’s rally from late July lows is pulling the dollar lower across the board. On the macroeconomic front, US data has been mixed today with orders for durable goods manufactured in the US contracting less than expected in September, due to a solid increase of non-defense capital goods. On the other hand, the US goods trade deficit widened to $96.3B in September from $89.4B in the previous month on the back of a sharp decline in exports which will have a negative impact on the third quarter’s growth. On the daily chart, after testing 5-month highs at 0.9368 on September, 30, the pair has been under downward pressure.The pair dropped below the critical 0.9275 support area. Further, the spot trades the 50-day Simple Moving Average (SMA) at 0.9217.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

If the price breaks below the intraday low then it would test the 0.9155 horizontal support level. A daily close below the crucial 0.9150 mark could drag the spot toward the September, 3 low at 0.9115. Next, the bears will keep their eyes on the low of August 30 at 0.9101.

Alternatively, the Moving Average Convergence Divergence (MACD) trades below the midline. Any uptick in the MACD could reverse the prevailing trend with the first upside target at the 50-day SMA at 0.9218. A daily close above the 50-day SMA would see a high of October, 20 at 0.9252, followed by the 0.9275 horizontal resistance level.

USDCHF

Oct 28 2021