26 Sep 2013
USD/CHF capped by 0.9100
FXstreet.com (Athens) – The USD/CHF is trading below the 0.9100 crucial resistance level both on worries about the looming political drama regarding the “debt ceiling”, as well on the very soft US data.
USD/CHF below 0.9100 on dismal US data, re-emerging “debt-ceiling” political drama
The USD/CHF is losing ground ahead of the re-emerging political drama of the notorious “debt-ceiling” which resurfaced again after the August of 2011. Elaborating on, we are ahead of a possible shutdown of the government on October 17 unless the US debt ceiling is raised once again by Congress. What’s more, yesterday’s data regarding US durable goods orders let down investors at a great extent, as while released above consensus at +0.1% on a monthly basis there was also a hefty downward revision to July from -7.3% to -8.1%, making a weaker-than-expected report overall. Taken for granted the three quantitative easing and the ultra-low interest rates, Fed could not take much pride in the real economic results; thus a tapering could be “later” than “sooner”.
Technical Outlook and strategic bias on USD/CHF
Karen Jones, Head Technical Analyst at Commerzbank suggests that “the USD/CHF remains capped by the June low at 0.9130. Failure to hold over 0.9077, the current September low, will see USD/CHF sell off to the 0.9023 2013 low and should this also give way, then the 0.8931 2012 low.”
USD/CHF below 0.9100 on dismal US data, re-emerging “debt-ceiling” political drama
The USD/CHF is losing ground ahead of the re-emerging political drama of the notorious “debt-ceiling” which resurfaced again after the August of 2011. Elaborating on, we are ahead of a possible shutdown of the government on October 17 unless the US debt ceiling is raised once again by Congress. What’s more, yesterday’s data regarding US durable goods orders let down investors at a great extent, as while released above consensus at +0.1% on a monthly basis there was also a hefty downward revision to July from -7.3% to -8.1%, making a weaker-than-expected report overall. Taken for granted the three quantitative easing and the ultra-low interest rates, Fed could not take much pride in the real economic results; thus a tapering could be “later” than “sooner”.
Technical Outlook and strategic bias on USD/CHF
Karen Jones, Head Technical Analyst at Commerzbank suggests that “the USD/CHF remains capped by the June low at 0.9130. Failure to hold over 0.9077, the current September low, will see USD/CHF sell off to the 0.9023 2013 low and should this also give way, then the 0.8931 2012 low.”