The USDCHF parity continued its upward trend as of September 21, 2018, while the European Central Bank (ECB) Governor Draghi’s announcement on interest rate cuts, followed by the US Federal Reserve (Fed) opening the door for interest rate cuts, the trend has allowed its appearance to end. USDCHF continues its downward trend from 0.9007 to 61.8% Fibonacci Retracement level 1.0040 and follows a profile that wants to continue its new outlook.
Main scenario: The USDCHF parity continues to look negative below 0.9910 below the lower point of the fall channel. The parity may retreat to 0.9787 – 0.09770 if the trend continues to meet expectations. In particular, the downward break in the 0.9787 – 0.09770 area could accelerate the sales pressure and allow to reach / approach the ratio of Fibonacci Expansion 161.8% to 0.9620. Possible support levels before the relevant Fibonacci region were recorded as 0.97 and 0.9645. In the case of a return from the 0.9787 – 0.09770 area, recovery can be observed towards the 0.9910 level.
Alternative scenario: Movements on the 0.9910 resistance point should be followed in order to end the negative expectation for the USD parity and a positive sentiment should be placed in the forefront. However, with this condition, especially towards 0.9964 1,0040 and 1,0097 levels towards the new pricing can be monitored.
Support: 0,9787 – 0,9770 – 0,9700 – 0,9645
Resistance: 0,9864 – 0,9910 – 0,9964 – 1,0040