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A potential scenario for USDCHF

Tuesday, January 8, 2019 2:05 PM GMT

Yesterday, the US ISM Non-Manufacturing PMI dropped to 57.6 in December from 60.7 in November, unrevised from market expectations of 59. On the other side, earlier today, the Swiss Retail Sales (YoY) fell to -0.5% from 1.0% in the previous month.   

Reviewing the weekly chart, USDCHF is moving towards the 61.8% Fibonacci level, which may act as a reversal point.

Weekly

Heading to the daily timeframe, the pair is currently failing to break out the support (S1) to the downside. A potential breakout below the support (S1) maybe indicates a continuation of the bearish momentum till the support zone between the 61.8% Fibonacci level and the daily (S2). At that point, the Bulls may take control of the pair targeting around 0.987 level.

Daily

d

On the other hand, if price breaks below the trendline (T1), then the scenario is busted.

Today’s agenda includes also US Consumer Credit Change (Previous: $25.38B, Forecast: $18.00B).

Always review your own analysis. If there is a confluence between the current study and your own strategy, then you may have even better trading setups.

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