FXstreet.com (Barcelona) - The Swissy has been fueled against Dollar today's session by the better than expected September KOF leading indicator in Switzerland. The USD/CHF rejection's from yesterday 1.0400 has continued today and pair has fallen to break 1.0300, MA200 hourly chart level, and trade at intra-day lows at 1.0280.
Currently the pair is trading around 1.0280/90, 0.70% lower than opening price action at 1.0359.
Swiss KOF leading indicator has risen more than expected in September from August, with a jump to 0.85 pts, the highest since August 2008. Market expectations were a increase to 0.33 pts from -0.04 pts in August.
The ecPulse.com analysis team comments: The Dollar versus Swissie pair reached the key resistance for the minor bullish channel at 1.0400, before reversing back to the downside within the channel to near the support level at1.0320, which intersects with the 50 MA, seen in the image above. All these signs, in addition to the stochastic indicator near an oversold area makes us believe the pair is to incline on the intraday basis; targeting 1.0455 noting the possibility of the formation of a bullish technical pattern with a neckline at 1.0390, where we can picture the bullish scenario, after the pair reverses from 1.0445 to retest the neckline before targeting 1.0550. This overview remains valid as far as 1.0240 is intact.