Forex: USD/CHF trading negatively at 0.9275/77 after German data

FXstreet.com (Barcelona) - The USDCHF has fallen into negative territory Friday, falling below the 0.9300 level after recording earlier highs in the region of 0.9309. Since then the pairs movement could be characterized as unstable, leading to a fluctuation across nearly 25 pips in the aftermath of a plunge which erased all gains earlier. Presently the cross has settled at 0.9275/77 in the aftermath of German data, trading negatively -0.15%.

According to Slobodan Drvenica, an analyst at Windsor Brokers Ltd., "The USDCHF came under increased pressure, after an attempt at the 0.9270 zone and subsequent bounce failed to sustain gains above the 0.9300 barrier. A quick reversal and penetration of 0.9270 signals that the consolidative phase may be over, however as the price also broke below 4h 55-day EMA and fresh weakness towards 0.9250 and 0.9200 (Fib 50% / 61.8% of 0.9109/0.9387) would be the likely near-term scenario."

In terms of the technical levels, the USDCHF is slated to be bolstered by calculated support at 0.9273, then 0.9248, and finally 0.9215. Regarding an upward movement and an eventual thrust above the 0.9300 barrier, resistances lie ahead at 0.9323 and 0.9330, notes Drvenica.

In Germany, the IFO - Business Climate has come in at 104.2 in January, against a consensus of 103.0. Meanwhile, the IFO - Current Assessment has yielded a result of 108.0 in January, vs. an expected value of 107.2. Finally, the ILO - Expectations (January) have shown 100.5 against projections calling for 99.0.