USDCHF also tested key support, failed and bounced

gregmikefx

GregMike-05265

The USDCHF moved through support at the 1.0135 level – reaching a low of 1.0128 – but like the EURUSD, was quickly reversed (see prior post).  The level continues as support now with another break needed to ignite further selling pressure in the pair. 

It is not unusual for news to lead to a break/rebound.   In this case the Fed minutes led to a quick downward reaction for the dollar. However, when the additional selling did not materialize, the covering was underway.  Now that the market has digested the comments, the market is settling back into the pre-release rhythm.  Support is reestablished at 1.0135 and normal liquidity conditions are back.


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

You might be interested in:
blog comments powered by Disqus

In partnership with CNN Money Part of the CNN Network