GOLD And Swiss Franc Loses Ground, Eye Lows

Key Highlights

• Swiss franc weakened a lot against the Swiss franc, as the EURCHF pair managed to correct higher in the near term.

• In New Zealand Employment Change released by the Statistics New Zealand came in at 1.2%, compared with the last reading of 0.8% and forecast was also lined up for 0.8% in the fourth quarter of 2014.

• New Zealand unemployment rate registered a reading of 5.7% whereas the market was expecting it be around 5.3%, down from 5.4%.

• Australian AIG Performance of Services Index released by the Australian Industry Group came in at 49.9, compared with the last reading of 47.5.

• In the UK, British Retail Consortium (BRC) Shop Price Index released posted a reading of -1.3% in January 2015, compared to the preceding month reading of -1.7%.

• Japanese Services Purchasing Managers Index (PMI) released by Markit Economics posted a reading of 51.3, compared with last reading of 51.7.

• Aussie dollar somehow managed to recover from the recent drop and traded above 0.7640.

USDCHF

The US dollar corrected lower against the Euro and the British pound, but was seen trading higher against the Swiss franc. However, the 0.9300 resistance area is acting as a resistance for the pair, which might cause a downside reaction in the near term. There is a bullish trend line on the 4 hour chart of the USDCHF pair, which is acting as a catalyst for the pair. We need to see how the pair trades if it moves lower from the current levels and test the highlighted trend line.

Intraday Support Level – 0.9160

Intraday Resistance Level – 0.9280

• Overall, as long as the pair is above the highlighted trend line it might continue trading higher.

• A break below the mentioned level could take the pair towards the 0.9000 level.

On the downside, a break lower could ignite a move towards the 0.9000 level, which can be considered as the next important barrier for the US dollar sellers.

GBPUSD

The British Pound finally managed to gain ground against the US dollar, as the recent releases in the UK managed to post good result. This lifted buyer’s sentiment and helped the GBPUSD pair to some extent. However, there remains a major bearish trend line on the 4 hour chart, which must be watched as it might protect the upside in the pair. Moreover, the 38.2% fib retracement level of the last drop from the 1.5619 high to 1.4951 low is also sitting around the same trend line. So, there is a major resistance around the 1.5200 area. Sellers might take a stand around the mentioned area.

Intraday Support Level – 1.5100

Intraday Resistance Level – 1.5200

• Selling rallies around the highlighted trend line look like a good option.

• A break above the 1.5200 level would call for more gains moving ahead.

If the GBPUSD pair fails to move higher, then a move back towards the 1.5100 level is possible in the near term. Let us see how it trades moving ahead.

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