USDCHF – Important Trend Line Resistance31 December, 2015 by Aayush Jindal in Fundamental Analysis, Market Analysis, Technical Analysis, USDCHF
USDCHF – Important Trend Line Resistance
- US Dollar failed to trade above the 0.9940-50 resistance area and moved lower against the Swiss Franc.
- There is a major bearish trend line and resistance zone formed on the hourly chart for the USDCHF pair.
- Today, the US Initial Jobless Claims will be released by the US Department of Labor, which is forecasted to rise from the last reading of 267K to 270K.
- Earlier during the Asian session, the Australian Private Sector Credit released by the Reserve Bank of Australia posted an increase of 0.4% in October 2015, less than the forecast of 0.6%.
USDCHF Technical Analysis
As mentioned the USDCHF pair struggled to break the 0.9940-50 resistance area and traded lower. The pair settled below the 100 and 200 hourly simple moving average, which is bearish sign and may take it further lower.
There was a bearish trend line formed on the hourly chart, which is acting as a barrier for buyers and igniting a downside rally every time the pair attempts to move higher.
On the downside, the recent low of 0.9855 holds the key, as a break below the stated level may call for more losses in the near term.
US Initial Jobless Claims
Today, the US Initial Jobless Claims, which is a measure of the number of people filing first-time claims for state unemployment insurance will be released by the US Department of Labor. The forecast is slated for an increase of 270K, which if turned true may put some pressure on the US Dollar in the near term.
Australian Private Sector Credit
Earlier during the Asian session, the Australian Private Sector Credit, i.e. an amount of money that the Australian private sector borrows released by the Reserve Bank of Australia. The forecast was lined up for an increase of 0.6% in October 2015, compared with the preceding month. However, the outcome was lower compared with the forecast, as the rise was only 0.4%.
In terms of the yearly change, the Australian Private Sector Credit rose 6.8% in October 2015, compared with the same month a year ago. It was in line with the forecast. Overall, the report was mixed, and caused a downside reaction in AUDUSD. However, the pair later managed to recover from losses after finding buyers near the 0.7220 support area.