USD/CHF Rejected from 0.9600 Handle, Turns Negative

USD/CHF Rejected from 0.9600 Handle, Turns Negative

2 May 2016, 12:53
Roberto Jacobs
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USD/CHF Rejected from 0.9600 Handle, Turns Negative

The USD/CHF pair got rejected from 0.9600 handle and erased all of its early Monday gains to drift back into negative territory and trade near day's through.

Last week, the pair witnessed continuous selling pressure and ended in red for all of the five trading days. Any attempts of a minor recovery got sold into, leading to a fall of almost 200-pips from weekly high of 0.9788, to finally close below 0.9600 mark.

On Monday, the pair attempted a recovery to 0.9600 mark during Asian session but erased all of its gains to currently trade at low point of the day, near 0.9575 level.

Technical levels to watch

Continued selling pressure, leading to a fall below Friday's low near 0.9567-65 zone seems to accelerate the fall immediately towards recent closing low level support near 0.9535-30 area.

On the upside, 0.9600-0.9615 area now seems to continue attracting fresh offers. However, a move above this immediate supply zone now seems to trigger an immediate short-covering rally towards 0.9665-70 region.


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