On the daily close chart, the pair is seen to be trading above its 50-day SMA of 0.9755, at 0.9810-0.9773 handle. This trade above its 50-day SMA while remaining above the 100-day SMA of 0.9742 signals an uptrend that started on June 11 when the two lines crossed and exchanged positions, putting 50-day SMA at current resistance.
The strength of the trend is neutral, not too strong and not too weak, seeing as how the 200-day SMA of 0.9827 is still above the 50-day and 100-day SMA but appears to be closing in. The pair seems to aim towards testing the very important 200-day SMA resistance, above which the momentum is likely to boost the pair beyond 0.9900 handle.
Support is found at 0.9772 and a break below could test a new support at 0.9742, while resistance is at 0.9821 and a rise through could find a next resistance at the level of 0.9840.
Looking ahead, investors would keep a close watch on Switzerland’s KOF leading indicator data for August, due to be released in some time. This is after the news of Swiss total sight deposits inched up to a level of CHF514.1 billion in the week ended 26 August, from CHF514.1 billion in the previous week.
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