The US Dollar (USD) plunged against the Swiss Franc (CHF) on Friday, decreasing the price to less than 0.9100, ahead of US existing home sales news. The technical bias might remain bearish because the price printed a lower low in the recent downside move.
As of writing this report, the USDCHF is being traded around 0.9082. Listed below are three significant support levels for the pair;
S1 = 0.9050, the low of August 17, 2020
S2 = 0.9009, the key horizontal support
S3 = 0.8900, the psychological number
A consistent drop in the price of the pair may result in more losses below the 0.8900 price tag.
On the upside, the pair is likely to come across a few resistance levels indicated below
R1 = 0.9186, the major horizontal resistance level
R2 = 0.9100, the psychological number
R3 = 0.9220, the 23.6% Fib level resistance
The technical bias in anticipated to remain bearish as long as 0.9186, the key horizontal resistance remains intact.
US Existing Home Sales News
The National Association of Realtors is scheduled to release the numbers for the existing home sales in the United States. According to the economist consensus, the US existing home sales registered 5.38m reading in July as compared to 4.72m reading in the month before. Since the housing market of the US is considered as a sensitive indicator of the country’s economic growth and can cause some volatility for the US Dollar (USD), therefore, its reading means a lot for the US economy. Generally speaking, a high reading is considered bullish for the US Dollar whereas a low reading suggests a bearish market ahead for the US Dollar (USD).
Given the macroeconomic outlook, selling the pair around the current levels may work the best in short to medium term trading.