US dollar struggles to hold gains against oversold CHF

By FXStreet FXStreet (Mumbai) – The US dollar is having a tough time holding gains against the CHF despite the strong US ADP data as the Swissie is oversold; courtesy of 800-pip fall since Oct 15th.

Stuck at hourly 100-MA

The USD/CHF pair spiked to 1.0280 following the ADP release, but quickly fell below the hourly 100-MA at 1.0277 and extended losses to 1.0264. Moreover, the pair could not even manage to re-test the daily high of 1.0293 clocked earlier today despite the stellar monthly US ADP report.

The slightly hawkish comments from the Fed’s Lockhart also failed to provide impetus to the USD/CHF pair.

USD/CHF Technical Levels

The pair faces immediate resistance at 1.0277 (hourly 100-MA), above which it could test 1.03 resistance, which, if taken out could trigger a rally to the latest cyclical high of 1.0328. On the other side, support is seen at 1.0256 (5-DMA), under which the losses could be extended to 1.0219 (10-DMA).
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Source:: FX Street