Tue, May 30, 2023 @ 07:34 GMT
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USD/CHF Outlook: Extends Steep Fall

The USDCHF fell to the lowest levels in more than two years on Thursday, as fresh weakness extends into third straight day.

Bears broke below psychological 0.90 support for the first time since June 2021, signaling continuation of larger downtrend from 1.0147 peak (Oct 2022) which paused for consolidation in first three months of 2023.

The latest dollar’s weakness was sparked by downbeat US CPI data, which pushed the price trough key supports and generated strong bearish signal.

Weekly close below 0.90 level to confirm signal and keep the pair en-route towards key med-term support at 0.8757 (Jan 2021 low), which guards pivot at 0.8705 (50% retracement of 2011/2016 0.7067/1.0343 rally / Apr-May 2014 higher base).

Bearish daily and weekly technical studies contribute to negative picture, although oversold conditions warn that bears may lose traction in coming sessions.

Broken 0.90 support and former range floor (0.9058) reverted to solid resistances which should limit potential upticks and keep bears intact.

Res: 0.9085; 0.9119; 0.9140; 0.9186.
Sup: 0.8871; 0.8757; 0.8705; 0.8634.

Windsor Brokers Ltd
Windsor Brokers Ltdhttp://www.windsorbrokers.com/
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.

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