11 Oct 2013
USD/CHF struggles to keep the 0.9100 level
FXstreet.com (Athens) – Despite the glitter of hope that finally the US will find even at the 12th hour an – even – short term solution on the US debt ceiling, the USD/CHF can’t find uptrend momentum to continue set up the bullish tone.
USD/CHF struggles above 0.9100 area despite reemerging hopes on US debt
The USD/CHF is heading slightly downwards and mostly sideways since the kick off of the early trading session despite the new hopes that finally the US will find a solution on the debt-ceiling issue. What’s more, the mere whiff of the scent that a default could be avoided has investors surreptitiously putting capital back into higher yielding FX, thus, closing their long positions on the safe haven currencies. However, the USD/CHF is still lacking of the uptrend momentum to overcome the crucial resistance as of 0.9130 (June low), in order to penetrate in higher levels.
Technical Outlook on USD/CHF
Karen Jones, Head Technical Analyst at Commerzbank suggests that the “USD/CHF is probing key short term resistance offered by the.9130 June low, which together with the .9152 23.6% retracement willneed to be overcome to introduce scope to the .9277 3 month downtrend. Intraday dips should find minor support at .9040 ahead of .9016. While capped by .9130/52, we remain unable to rule out further losses to the .8931/.8909 zone (2012 low and the base of a one year down channel), but we look for this to hold the downside and provoke reversal.”
Our personal aspect of view is that traders interested in the USD/CHF, should by far keep an eye to the EUR/USD, due to the fact that both crosses are almost absolutely heavily inversely correlated. As a matter of fact, traders should be not taken aback by the EUR/USD downtrend shift, as it is very plausible since the USD/CHF is taking the upper level.
USD/CHF struggles above 0.9100 area despite reemerging hopes on US debt
The USD/CHF is heading slightly downwards and mostly sideways since the kick off of the early trading session despite the new hopes that finally the US will find a solution on the debt-ceiling issue. What’s more, the mere whiff of the scent that a default could be avoided has investors surreptitiously putting capital back into higher yielding FX, thus, closing their long positions on the safe haven currencies. However, the USD/CHF is still lacking of the uptrend momentum to overcome the crucial resistance as of 0.9130 (June low), in order to penetrate in higher levels.
Technical Outlook on USD/CHF
Karen Jones, Head Technical Analyst at Commerzbank suggests that the “USD/CHF is probing key short term resistance offered by the.9130 June low, which together with the .9152 23.6% retracement willneed to be overcome to introduce scope to the .9277 3 month downtrend. Intraday dips should find minor support at .9040 ahead of .9016. While capped by .9130/52, we remain unable to rule out further losses to the .8931/.8909 zone (2012 low and the base of a one year down channel), but we look for this to hold the downside and provoke reversal.”
Our personal aspect of view is that traders interested in the USD/CHF, should by far keep an eye to the EUR/USD, due to the fact that both crosses are almost absolutely heavily inversely correlated. As a matter of fact, traders should be not taken aback by the EUR/USD downtrend shift, as it is very plausible since the USD/CHF is taking the upper level.