30 Aug 2013
USD/CHF breaks 0.9300 after US data release
FXstreet.com (Athens) - Despite the soft secondary US data, the USD/CHF climbed above the 0.9300 area.
Will the USD/CHF sustain its uptrend momentum after US data release?
While the US data were softer than expected, the American dollar amidst the global turmoil is boosted across the board. What’s more, it’s really weird that the US treasuries climbing despite the weaker than expected US data. Btmu fx research suggest that “ the shock vote in parliament rejecting the UK government’s request for permission in principle to attack Syria has placed some doubt in there being any imminent attack on Syria. The FT is running with the story that the US could go it alone but China has warned against that and President Obama is likely to be very wary of unilateral action and how that would be perceived ”. Traders should always have in mind, that USD/CHF and EUR/USD have a highly negative correlation, so an upward trend in one pair might affect the opposite way the other cross and vice versa.
Technical outlook on USD/CHF
At the time of writing, the pair is trading at 0.9311, up 0.01%, well above the 0.9300 area. Commerzbank Technicals suggest that ‘‘USD/CHF has found support at 0.9147, slightly above the June low at .9130, and appears to be attempting to base. We note the divergence of the daily RSI and risks are for a near term recovery to the two month resistance line at 0.9262. This needs to be breached for the next higher 200- and 55-day moving averages at 0.9344/45 to be reached’. The FXstreet.com Trend Index shows the pair to be slightly bullish. Daily pivot point support can be found at 0.9107, 0.9085, 0.9062 and resistance at 0.9309, 0.9334, 0.9360, respectively
Will the USD/CHF sustain its uptrend momentum after US data release?
While the US data were softer than expected, the American dollar amidst the global turmoil is boosted across the board. What’s more, it’s really weird that the US treasuries climbing despite the weaker than expected US data. Btmu fx research suggest that “ the shock vote in parliament rejecting the UK government’s request for permission in principle to attack Syria has placed some doubt in there being any imminent attack on Syria. The FT is running with the story that the US could go it alone but China has warned against that and President Obama is likely to be very wary of unilateral action and how that would be perceived ”. Traders should always have in mind, that USD/CHF and EUR/USD have a highly negative correlation, so an upward trend in one pair might affect the opposite way the other cross and vice versa.
Technical outlook on USD/CHF
At the time of writing, the pair is trading at 0.9311, up 0.01%, well above the 0.9300 area. Commerzbank Technicals suggest that ‘‘USD/CHF has found support at 0.9147, slightly above the June low at .9130, and appears to be attempting to base. We note the divergence of the daily RSI and risks are for a near term recovery to the two month resistance line at 0.9262. This needs to be breached for the next higher 200- and 55-day moving averages at 0.9344/45 to be reached’. The FXstreet.com Trend Index shows the pair to be slightly bullish. Daily pivot point support can be found at 0.9107, 0.9085, 0.9062 and resistance at 0.9309, 0.9334, 0.9360, respectively