USDCHF, Daily
The USD continues to soften against its major partners. USDJPY is trading at a three-week low below 112.35, EURUSD and Cable both spiked higher (to 1.1470 and 1.2875, respectively) before turning lower. In the higher time frame Fridays moves (November 16) could prove significant. The EURUSD broke back over its 20-day moving average for the first time in 35 trading days, the USDJPY also broke its 20 SMA, and the USDCHF breached this key level for the first time in 38 trading days.
The USDCHF move also had the additional significance of a break below parity (1.0000), a level the pair had held for 14 trading days to confirm a May, July and October/November triple top. The move on Friday followed through yesterday with a decline that broke the 50-day moving average. Today we trade down again, at the 38.2 Fibonacci level, the daily S1 level and the lower Bollinger band at 0.9906. Significantly adrift from parity. Next Support is S2 at 0.9873 and then the key 200-day moving average and 50.0 Fibonacci level at the 0.9840 zone. The 61.8 Fibonacci level sits at 0.9765. Parity, and then the 20-day moving average at 1.0025 needs to be regained before a test of the recent high at 1.0130, could be contemplated.
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Stuart Cowell
Head Market Analyst
HotForex
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