USD/CHF breaks below key consolidation zone: What's next?
Gary Christie December 15, 2020 8:18 AM
Pair remains under pressure after breaking 0.898 support.
On Tuesday, Empire Manufacturing for December is expected to rise to 6.5 on month, from 6.3 in November. Finally, Industrial Production for November is expected to increase 0.3% on month, compared to +1.1% in October.
The Euro was bullish against most of its major pairs with the exception of the CHF and GBP. In Europe, the European Commission has reported the Eurozone's Industrial Production in October at +2.1% (vs +2.0% on month expected).
The Australian dollar was bearish against all of its major pairs.
Looking at active pairs, the USD/CHF declined 26 pips in Monday's trading. The pair broke below a consolidation zone that has been in place since July. Key resistance can be identified at the 0.898 level. Look for the downtrend to continue towards support targets of 0.8805 and 0.87 in extension.
Source: GAIN Capital, TradingView
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