USDCHF grinds major resistance
The Swiss franc bounced after SNB Chairman Thomas Jordan insisted on pursuing the tightening. Following a break above the double top at 0.9870, a bullish MA cross on the daily chart indicates an acceleration to the upside. Strong buying interest has pushed the greenback back to parity. Last June’s high at 1.0040 is sellers’ last stronghold and its breach could resume the uptrend towards 1.0200. The RSI’s overbought condition caused a pullback and the former resistance at 0.9870 is the first level for accumulation.
GBPUSD seeks support
The pound slips as Britain’s pension funds scramble to meet margin calls amid bond firesale. Breaks below 1.1300 and 1.1100 prompted short-term buyers to take profit. As overall sentiment remains downbeat, the lack of support suggests that the bulls might be wary of catching a falling knife. 1.0770 is the next level to see if new buyers would emerge, or Sterling could drift to the base of the recent rebound at 1.0550. 1.1180 is the first hurdle and the bulls will need to clear 1.1380 before a recovery could gain traction.
USOIL consolidates gains
WTI softens as China ramps up Covid control in major cities. The rally above the psychological level of 90.00 has briefly lifted the optimism. But the origin (93.50) of the late August sell-off is a tough level to crack. The bulls are looking to consolidate their gains and 87.00 off the recent bullish breakout is the first area to gauge the strength of follow-up demand. If the bid gets hit, more profit-taking would follow and a correction may push the price towards 84.00 in the congestion area that sits over the 30-day moving average.
