10 Jun 2013
EUR/CHF through 1.2400
FXstreet.com (London) - The EUR/CHF has been trading over 100 pips higher than the low printed on Friday, gapping up to 1.2365 and steadily drifting to a high of 1.2415 today at time of writing.
USD/CHF unwinding
Teams at UBS explained that USD/CHF had its worst week since December 2010 as asset mangers, corporates and hedge funds all reduced exposure. In hindsight it appears that this pair was favoured the way to play USD upside rather than the yen. The surge in the franc allowed some profit taking on exigent short EUR/CHF positions and enter fresh longs (or to obtain long EURUSD exposure) for all four client classes tracked.
The price action today in both dollar and euro crosses took the pairs higher at the open. USD/CHF 0.9365 went to 0.9410, and similarly EUR/CHF 1.2370 -1.2405 on corporate demand. Once this was exhausted there was a quick drift back to the opening levels. The 100 dma in USD/CHF, which was support on the way down, may become the pivot on the way higher on a closing basis, and EUR/CHF might continue above the gap in a relatively quiet start to the week.
Levels in EUR/CHF
1.2390 support as Thursday highs and psychological level with 1.2320 on the way back down. Resistances are likely to be previous 1.2430, 1.2470 1.2488 to meet Mondays highs.
USD/CHF unwinding
Teams at UBS explained that USD/CHF had its worst week since December 2010 as asset mangers, corporates and hedge funds all reduced exposure. In hindsight it appears that this pair was favoured the way to play USD upside rather than the yen. The surge in the franc allowed some profit taking on exigent short EUR/CHF positions and enter fresh longs (or to obtain long EURUSD exposure) for all four client classes tracked.
The price action today in both dollar and euro crosses took the pairs higher at the open. USD/CHF 0.9365 went to 0.9410, and similarly EUR/CHF 1.2370 -1.2405 on corporate demand. Once this was exhausted there was a quick drift back to the opening levels. The 100 dma in USD/CHF, which was support on the way down, may become the pivot on the way higher on a closing basis, and EUR/CHF might continue above the gap in a relatively quiet start to the week.
Levels in EUR/CHF
1.2390 support as Thursday highs and psychological level with 1.2320 on the way back down. Resistances are likely to be previous 1.2430, 1.2470 1.2488 to meet Mondays highs.