USD/CHF recently made a downside break from its symmetrical triangle pattern, hinting that a longer-term slide might be underway.
For now, check out the major headlines during the Asian session and how the majors fared:
Fresh Market Headlines & Economic Data:
- New Zealand to ease more restrictions and might return to normal by next week
- Crude oil surges on stronger hopes for extended output cuts
- Asian stocks in the green as headlines support recovery speculations
- Australia reported 0.3% GDP contraction in Q1 vs. projected -0.4% figure
- Australian building approvals slumped 1.8% vs. projected 10.8% drop
- Chinese Caixin services PMI up from 44.4 to 55.0 vs. expected 47.4 reading
- EU prepared to give the U.K. a two-year extension on Brexit talks?
Upcoming Potential Catalysts on the Economic Calendar:
- Swiss GDP at 6:45 am GMT
- U.K. final services PMI at 9:30 am GMT
- Eurozone PPI and unemployment rate at 10:00 am GMT
What to Watch: USD/CHF
The dollar has been on weak footing against most of its rivals as risk-taking has been in play in the Asian session.
USD/CHF has already tumbled below the symmetrical triangle support, hinting that a slide of the same height as the pattern may follow.Before that happens, the pair might pull up to the nearby resistance levels marked by the Fib tool to draw more sellers in. In particular, the 61.8% level lines up with the broken triangle support that could now hold as resistance.
If any of the Fibs keep gains in check, USD/CHF could resume the drop to the swing low near .9575 or lower.
Need help in placing your stops and targets? Better check out the average USD/CHF volatility when setting exit levels!