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31 Oct 2013
USD/CHF a fade or hold, wait and see?
FXstreet.com (London) - USD/CHF is a benefactor of the long dollar trade from yesterday and month end could be a supporting factor also. The pair is much higher and has broken key levels.
USD/CHF has breached 0.9020 and 0.9050 marking a high of 0.9067 and RSI is now above 70, signifying the momentum has slowed down ahead of the weekend and a new month next week. Derek Halpenny at The Bank of Tokyo-Mitsubishi UFJ said FOMC caution helped to lift the dollar as the FOMC chose to be cautious in its statement after its meeting yesterday with the content avoiding any signal of a downgrade to the outlook for the economy. “Indeed, one would have to conclude that the FOMC is more upbeat having removed the segment on tightening financial market conditions potentially slowing the economy and jobs market going forward. So, essentially, the FOMC is telling us that the easing in financial market conditions (lower yields) is far more important for the outlook of the economy than the 16-day government shutdown and the debt-ceiling brinkmanship. That makes a lot of sense from the perspective that the FOMC always prefers to attach economic fundamental reasons to its decision-making rather than developments in Congress”.
USD/CHF Levels
The 20 DMA is 0.9027, the 50 DMA is 0.9143 and the 200 DMA is 0.9321. RSI (14) reads 70.39. Supports are ascending from 0.8971, 0.8987, 0.9011, 0.9024 and 0.9050. Spot is currently 0.9054 while resistances are 0.9064 and 0.9098.
USD/CHF has breached 0.9020 and 0.9050 marking a high of 0.9067 and RSI is now above 70, signifying the momentum has slowed down ahead of the weekend and a new month next week. Derek Halpenny at The Bank of Tokyo-Mitsubishi UFJ said FOMC caution helped to lift the dollar as the FOMC chose to be cautious in its statement after its meeting yesterday with the content avoiding any signal of a downgrade to the outlook for the economy. “Indeed, one would have to conclude that the FOMC is more upbeat having removed the segment on tightening financial market conditions potentially slowing the economy and jobs market going forward. So, essentially, the FOMC is telling us that the easing in financial market conditions (lower yields) is far more important for the outlook of the economy than the 16-day government shutdown and the debt-ceiling brinkmanship. That makes a lot of sense from the perspective that the FOMC always prefers to attach economic fundamental reasons to its decision-making rather than developments in Congress”.
USD/CHF Levels
The 20 DMA is 0.9027, the 50 DMA is 0.9143 and the 200 DMA is 0.9321. RSI (14) reads 70.39. Supports are ascending from 0.8971, 0.8987, 0.9011, 0.9024 and 0.9050. Spot is currently 0.9054 while resistances are 0.9064 and 0.9098.