15 Jan 2016
USD/CHF trades flat, European equities to open weak
FXStreet (Mumbai) - The USD/CHF pair is trading flat even though the major European equity index futures are indicating risk aversion ahead.
Will Europe follow Asia or US?
The question is whether the risk aversion seen in Asia hits the European shores or the investors in Europe take cues from the positive action on the Wall Street. In the former case, the demand for the safe havens - JPY, CHF could spike, while in the later case the CHF may come under pressure.
Later in the day, the US monthly retail sales data could affect overall demand for the US dollars.
USD/CHF Technical Levels
The pair currently trades at 1.0038. The immediate support is seen at 1.002 (50-DMA), under which the pair could drop to 0.9990 (Dec 17 high). On the other side, a break above 1.0059 (hourly 50-MA) would expose 1.0092 (previous day’s high).
Will Europe follow Asia or US?
The question is whether the risk aversion seen in Asia hits the European shores or the investors in Europe take cues from the positive action on the Wall Street. In the former case, the demand for the safe havens - JPY, CHF could spike, while in the later case the CHF may come under pressure.
Later in the day, the US monthly retail sales data could affect overall demand for the US dollars.
USD/CHF Technical Levels
The pair currently trades at 1.0038. The immediate support is seen at 1.002 (50-DMA), under which the pair could drop to 0.9990 (Dec 17 high). On the other side, a break above 1.0059 (hourly 50-MA) would expose 1.0092 (previous day’s high).