21 Jan 2016
USD/CHF reverses and trims gains
FXStreet (Córdoba) - The Swiss franc dropped sharply across the board and particularly against the US dollar after Mario Draghi signaled more easing was likely from the European Central Bank in March. The decline of USD/CHF happened as EUR/USD rebounded sharply rising toward 1.0900.
Still above the 20-day MA
USD/CHF jumped to 1.0145, reaching the highest level since December 03. After the beginning of the American session the pair stabilized but during the last hour it turned sharply to the downside, accelerating below 1.0100.
It printed a fresh session low at 1.0051 and it was trading at 1.0060/65, less than 20 pips above yesterday’s closing price.
Once again, the US dollar is being rejected from levels on top of 1.0100. But so far it remains above the 20-day moving average (currently at 0.9990) that continues to offer support. A daily close significantly below the parity level could change the short-term bias to the downside.
Still above the 20-day MA
USD/CHF jumped to 1.0145, reaching the highest level since December 03. After the beginning of the American session the pair stabilized but during the last hour it turned sharply to the downside, accelerating below 1.0100.
It printed a fresh session low at 1.0051 and it was trading at 1.0060/65, less than 20 pips above yesterday’s closing price.
Once again, the US dollar is being rejected from levels on top of 1.0100. But so far it remains above the 20-day moving average (currently at 0.9990) that continues to offer support. A daily close significantly below the parity level could change the short-term bias to the downside.