28 Oct 2013
USD/CHF struggles to move upwards despite risk on sentiment
FXstreet.com (Athens) – The USD/CHF has been trading slightly upwards since the kick off of the Asian trading session, despite risk appetite is prevailing across the board due to market expectations the Fed will maintain its monetary policy unchanged this week.
USD/CHF fails to climb higher despite the risk on sentiment
The USD/CHF is trading slightly upwards during the midst of the European trading session, but it surely puts riddles to market participants, as amidst a very ‘risk-on’ trading day it fails to gain uptrend momentum. However, taken for granted that the EUR/USD is trading higher today, market investors should not be taken aback as between the two cross, lies an immense negative correlation, thus a movement of the EUR/USD closer to 1.4000 area, would probably put under severe pressure the USD/CHF. Finally, ahead of we will witness the release of September industrial production and September pending home sales, plus the October Dallas Fed manufacturing survey. While they are all second tier data, traders should not catch themselves off guard if the data releases influence to a major or less extent the American’s dollar trend.
Technical Aspects on the USD/CHF
Karen Jones Head Technical Analyst of Commerzbank, mentions that the “USD/CHF sold off into new lows for the year last week– it has reached the base of the 15 month down channel at .8900. Directly below here lies the 38.2% retracement of the move up from the 2011 low, this is located at .8862. These are 2 major supports and we are alert to the idea of reversal down here. We note the 13 count on the daily and the divergence of the daily RSI – both imply that these supports will hold.
Rallies will find initial resistance at .8967 the 3rd October and will need to overcome this to target the .9096 resistance line and then the .92003 month downtrend.”
USD/CHF fails to climb higher despite the risk on sentiment
The USD/CHF is trading slightly upwards during the midst of the European trading session, but it surely puts riddles to market participants, as amidst a very ‘risk-on’ trading day it fails to gain uptrend momentum. However, taken for granted that the EUR/USD is trading higher today, market investors should not be taken aback as between the two cross, lies an immense negative correlation, thus a movement of the EUR/USD closer to 1.4000 area, would probably put under severe pressure the USD/CHF. Finally, ahead of we will witness the release of September industrial production and September pending home sales, plus the October Dallas Fed manufacturing survey. While they are all second tier data, traders should not catch themselves off guard if the data releases influence to a major or less extent the American’s dollar trend.
Technical Aspects on the USD/CHF
Karen Jones Head Technical Analyst of Commerzbank, mentions that the “USD/CHF sold off into new lows for the year last week– it has reached the base of the 15 month down channel at .8900. Directly below here lies the 38.2% retracement of the move up from the 2011 low, this is located at .8862. These are 2 major supports and we are alert to the idea of reversal down here. We note the 13 count on the daily and the divergence of the daily RSI – both imply that these supports will hold.
Rallies will find initial resistance at .8967 the 3rd October and will need to overcome this to target the .9096 resistance line and then the .92003 month downtrend.”