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USD/CHF stumbles to 0.9089 8-month lows

FXstreet.com (Barcelona) - USD/CHF was unable to hold on to bearish pressure and was rushed to 0.9089 session lows not seen in 8 months. After dovish Fed’s official comments, the pair gave in to a stronger Swissy.

Patience can be afforded?

On “borderline decision” after “weaker data” releases in the US, the Fed announced an undefined tapering. “We got some weaker data, so that put the committee in a position where we could delay” to add “we can afford to be patient”. The dollar retraced from the 0.91 zone after the comments and Wall Street fell as investors weighed in the scenario.

USD/CHF Technical Levels

Technically speaking, both the primary and secondary trends are pointing down. The pair extends the sideways range since last Wednesday’s fall below the 0.92 zone and prints 218 pips lost this week. At 0.9097, the pair oscillates between supports aligned at 0.9091 (December 31st 2012 lows), 0.9058 (February 7th lows) followed by 0.9019 (January 30th lows) and resistances set at 0.9126 (June 10th lows), 0.9168 (August 17th lows) ahead of 0.9217 (September 13th lows). According to the FXstreet.com trend index, the pair is slightly bearish on one-hour timeframe analysis below the EMA20.

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