Forex: USD/CHF eases back to 0.9200 level after failure to break resistance

The USD/CHF has edged higher Thursday, however following the publication economic data in Italy the pair has eased off of the 0.9222 (session high) mark in recent moments, unable to break initial resistance. At the time of writing the cross is testing 0.9200 level.

After reporting some weak GDP data in Germany earlier, Italy has continued the trend, revealing Gross Domestic Product (QoQ) contracting by -0.9% in the fourth quarter, against estimates calling for a loss of only -0.6%. Moreover, the Gross Domestic Product (YoY) has fallen -2.7% in the fourth quarter, exceeding the projected figures of only -2.3%.

According to Slobodan Drvenica, an analyst at Windsor Brokers Ltd., “The near-term USD/CHF tone is slightly aligned towards the upside, following attempts at range tops, however a sustained break above 0.9200 and regain of Fibonacci barrier at 0.9247 is required to confirm bullish resumption and open way for fresh extension towards 0.9300.”

Out of the shadows of weak European data, the USD/CHF has established itself in positive territory, up +0.27%. Slobodan Drvenica identifies that increased gains will be sequestered by resistances at 0.9218, up towards 0.9247, and eventually 0.9300 (key upside barrier). On the downside, the pair will encounter means of calculated support at 0.9165, then 0.9150, and finally the 0.9115 handle.