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31 Oct 2013
USD/CHF looks upwards as greenback surges across the board
FXstreet.com (Athens) – The USD/CHF is trading upwards for a fourth consecutive day, after three straight green days, mainly because FOMC statement made market participants to be very hesitant on their bets ahead of FOMC decision.
USD/CHF on the upper level as EUR/USD looks the floor; December taper not off the table
The USD/CHF is trading currently above the 0.9000 handle after having touched earlier a daily high as of 0.9019 (EMA 20). It is important to point out that the USD/CHF was one of the biggest winners post FOMC announcement, since the American dollar gained solid ground against its Swissie counter-part. Briefly, the Swissie was one of the most wounded currencies against the greenback and taken for granted that there is a heavy inverse correlation between the EUR/USD and USD/CHF (almost -0.93), it was more than plausible that the downtrend reversal of the EUR/USD would lead to an uptrend shift of the USD/CHF. Furthermore, it is noteworthy that the USD/CHF is still capped by its 20-EMA (now standing at 0.9019), since both today and yesterday can’t overcome the 20-EMA levels. Market participants should both pay attention to the technical area as of 0.9019-0.9043 where a confluence of major resistance levels are laying, but also should try to watching data and seeing to what extent this underlines or undermines the possibility of Fed tapering at the December meeting, which is unlikely but still on ‘play.’
Technical Perspective on the USD/CHF
Karen Jones Head Technical Analyst of Commerzbank, mentions that the “USD/CHF USD/CHF held steady to higher and we continue to look forgains near term. The market last week charted a new low which was accompanied by a divergence of its daily RSI, this reflects a loss ofdownside momentum. It has also charted a 13 count on the TD combo,and recovered from the base of the 15 month down channel at .8900.Directly below here lies the 38.2% retracement of the move up from the2011 low, this is located at .8862. These are 2 major supports and we seeing signs of significant reversal down here.Initial target is the .9066 resistance line and then the .9179 3 month downtrend.”
USD/CHF on the upper level as EUR/USD looks the floor; December taper not off the table
The USD/CHF is trading currently above the 0.9000 handle after having touched earlier a daily high as of 0.9019 (EMA 20). It is important to point out that the USD/CHF was one of the biggest winners post FOMC announcement, since the American dollar gained solid ground against its Swissie counter-part. Briefly, the Swissie was one of the most wounded currencies against the greenback and taken for granted that there is a heavy inverse correlation between the EUR/USD and USD/CHF (almost -0.93), it was more than plausible that the downtrend reversal of the EUR/USD would lead to an uptrend shift of the USD/CHF. Furthermore, it is noteworthy that the USD/CHF is still capped by its 20-EMA (now standing at 0.9019), since both today and yesterday can’t overcome the 20-EMA levels. Market participants should both pay attention to the technical area as of 0.9019-0.9043 where a confluence of major resistance levels are laying, but also should try to watching data and seeing to what extent this underlines or undermines the possibility of Fed tapering at the December meeting, which is unlikely but still on ‘play.’
Technical Perspective on the USD/CHF
Karen Jones Head Technical Analyst of Commerzbank, mentions that the “USD/CHF USD/CHF held steady to higher and we continue to look forgains near term. The market last week charted a new low which was accompanied by a divergence of its daily RSI, this reflects a loss ofdownside momentum. It has also charted a 13 count on the TD combo,and recovered from the base of the 15 month down channel at .8900.Directly below here lies the 38.2% retracement of the move up from the2011 low, this is located at .8862. These are 2 major supports and we seeing signs of significant reversal down here.Initial target is the .9066 resistance line and then the .9179 3 month downtrend.”