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USD/CHF choppy

FXstreet.com (London) - USD/CHF has been a choppy play, while it has been reversing it gains in what seems now a distant memory at 0.9790.

Later on there is US data in jobless claims which might help to shed some light on whether this choppy price behaviour is just consolidation before higher levels or whether this price action is actually indicating a topping affect for the pair. At times like this, traders tend to sit on the sidelines for a clearer perspective, but for the mean time, support is at 0.9565 and 0.9490 with resistance now at 0.9610, 0.9660 and 0.9720.

More on the calendar today, there is the second reading of Q1 GDP. This is expected to come in unchanged from the first estimate at 2.5% Q/Q annualized. Also, initial jobless claims are expected to match last week’s print of 340K.

Analysts at Commerzbank said ‘While this choppy behaviour can be viewed as a ‘ topping’ price action, we are inclined to view it as consolidation in an overall bull trend. The market remains under pinned by 0.9578 mid-May low and the 0.9568 March high.’ She added, ‘Provided that dips hold over 0.9548 (uptrend), attention is on the 0.98395 May high and then 0.9972 the 2012 high. Below 0.9848 will trigger a slide to the 200 day ma at 0.9360.’

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