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Technical analysis of USD/CHF for December 19, 2016

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USD/CHF is under pressure. The pair has struck against its nearest resistance at 1.0315, and is now reversing down. The declining 50-period moving average now plays a resistance role, and is likely to push the prices lower. Besides, the relative strength index is bearish below its neutrality area at 50.

On the economic data front, housing starts decreased to 1.09M in November (estimated 1.23M) from 1.34M in the previous month. In other news, building permits dropped to 1.2M in November (forecast 1.24M) compared with 1.26M in October.

In which case, as long as 1.0285 is not surpassed, look for a new drop to 1.0210 and 1.0180 in extension.

Resistance levels: 1.0315, 1.0345, 1.0375

Support levels: 1.0210, 1.0180, 1.0135

The material has been provided by InstaForex Company - www.instaforex.com