USD/CHF fades a spike to 0.9927 and turns sharply lower

By FXStreet The USD/CHF pair faded its spike to 0.9927 and dropped sharply to a 5-day low level of 0.9872 after USD bulls seems unimpressed by slightly better-than-expected headline US economic data.

Economic data from the US showed an unexpected rise of 3.4% in durable goods orders for April, while the rise in core durable goods orders was relatively muted. Meanwhile, the weekly initial jobless claims dropped by 10,000 to 268k, continuing to point the inherent strength in the US labor market.

Immediately after the US economic data releases, bulls attempted a recovery from weekly lows support near 0.9885 but failed to extend the bounce beyond weekly high. The pair finally broke through the 0.9885 immediate support and now seems set to extend its corrective move.

Technical levels to watch

From current levels, the corrective move seems more likely to get extended towards an important moving averages (100 & 200-day SMAs) confluence resistance turned immediate strong support near 0.9835 region. A decisive break below this strong resistance turned important support now seems to open room for further near-term corrective move for the pair.

Meanwhile on the upside, the pair now needs to again conquer and build on to the gains beyond 0.9900 handle. A follow through …read more

Source:: FX Street