USD/CHF well offered below 0.9600 handle ahead of US data
Having posted a daily high at 0.9629, the USD/CHF pair remained well offered below 0.9600 handle and is currently hovering around 8-week low around 0.9575-80 band.
After failing to hold a short-term ascending trend-line support near 0.9600 region, and a subsequent drop to nearly 2-month lows, the pair has failed to register even a tepid rebound from lower levels.
Next in focus would be US macro releases, which includes - weekly jobless claims and Philly Fed Manufacturing Index, during early NA trading session.
How strong has the move been?
The FXStreet OB/OS Index is reflecting neutral hourly conditions, while the FXStreet Trend Index is slightly bearish. Currently RSI is at 38.23, up from the last hourly print at 35.22, with ADX at 29.51, down from its previous close at 55.04.
Daily RSI sits at 36.20, in neutral territory. Looking to momentum indicators, the hourly 200 SMA is currently at 0.9619, down from the last close at 0.9733 and declining. Over the past 20 days, the exponential average closing price is 0.9745, and trending lower.
How volatile has USD/CHF been?
On the hourly USD/CHF chart, ATR (14) is presently at 17 pips, while 2-Standard Deviation Volatility Bandwidth is expanding and currently 71 pips. On a daily chart, 2-Standard Deviation Volatility Bandwidth is expanding at 344 pips.
Over the past four weeks, 17 pips has been the average movement for the current session. Following the four week period average, today’s most volatile hour is between 12:00-13:00 GMT which has an average movement of 26 pips.
What price levels and patterns have to be considered?
We can see next resistance ahead at 0.9592 (Daily Classic S1), 0.9597 (Yesterday's Low), 0.9606 (Hourly 20 EMA), 0.9619 (Monthly Low) and 0.9619 (Weekly Low). Support below can be found at 0.9563 (Daily Classic S2), 0.9552 (Weekly Classic S3), 0.9529 (Daily Classic S3) and 0.9528 (YTD Low).
Looking to candlestick patterns, we can see a Dark Cloud Cover formation on the 1-hour chart .