Filed Under:
Forex pairs in this Article » USD/CHF
FXstreet.com (Chicago) - USD/CHF exhausted upswing after reaching tripe tops (August 14th highs and August 1st highs) at 0.9382 session highs.

Better-than-expected US manufacturing data

Switzerland released its GDP data for the second quarter of the year at 0.5% compared to a previous 0.6% and expectations at 0.3% (MoM). The annual rate was 2.5% vs. expected 1.7% and previous 1.2%. Regardless of better-than-expected results, US manufacturing data outweighed bears. The Markit Manufacturing PMI for August was 53.1 vs. previous 54.0 and past 53.7 while construction spending (MoM) for July was 0.6% vs. past flat results and projections at 0.3%. The ISM manufacturing PMI was 55.7 while expectations were 54.0 and prior results were 53.7. Finally, ISM prices paid were 54 vs. past 49 and expectations at 52. After risk aversion has declined in regards to the Syrian conflict, the Fed’s tapering re-enters the minds of market participants. On September 17th and 18th, the Fed will decide whether or not it is appropriate to reduce the bond-buying program.

USD/CHF Technical Levels

Price action reveals triple tops reached at today’s session highs. The pair had a runaway gap indicating heavy buying right before reaching peaks. Failing to support performance, the pair extends downward trend line with three consecutive lowest lows so far. At 0.9363, the pair trades between supports at 0.9348 (August 13th highs), 0.9321 (August 14th lows) ahead of 0.9286 (August 30th lows) and resistances at 0.9377 (August 14th highs), 0.9395 (August 15th highs) followed by 0.9418 (July 19th highs). According to the FXstreet.com trend index, the pair is neutral on one-hour timeframe analysis but remains above the EMA20.
comments powered by Disqus