USD/CHF breaks below key consolidation zone: What's next?

Pair remains under pressure after breaking 0.898 support.

FOREX 9

On Tuesday, Empire Manufacturing for December is expected to rise to 6.5 on month, from 6.3 in November. Finally, Industrial Production for November is expected to increase 0.3% on month, compared to +1.1% in October.

The Euro was bullish against most of its major pairs with the exception of the CHF and GBP. In Europe, the European Commission has reported the Eurozone's Industrial Production in October at +2.1% (vs +2.0% on month expected).

The Australian dollar was bearish against all of its major pairs. 

Looking at active pairs, the USD/CHF declined 26 pips in Monday's trading. The pair broke below a consolidation zone that has been in place since July. Key resistance can be identified at the 0.898 level. Look for the downtrend to continue towards support targets of 0.8805 and 0.87 in extension.

Source: GAIN Capital, TradingView


More from Forex

Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.