25 Oct 2013
USD/CHF extends its recovery as EUR/USD dips below 1.3800
FXstreet.com (Athens) – The USD/CHF has been trading constantly higher since the kick off of the European trading session, having already managed to trade its daily high ahead of US data.
USD/CHF recovers as EUR/USD loses sight ahead of the US durable goods data
The USD/CHF is trading steadily on the upper level in European trading session, recovering from its downtrend shift on Asia. While risk sentiment is still ‘off’ across the board, as market participants mostly concentrate on looming PBoC tightening - shrugging off the German IFO releases, UK GDP – the cross managed to gather again uptrend momentum mostly due to the sharp fall of the EUR/USD below the 1.3800 area. Briefly, it is widely known that there is a strong, heavy inversely correlation between the EUR/USD and the USD/CHF. Therefore, traders should not be taken aback by the fact that as EUR/USD extends its losses below 1.3800, the USD/CHF might continue to set up a bullish tone.
Technical Aspects on the USD/CHF
Karen Jones Head Technical Analyst of Commerzbank, mentions that the “USD/CHF remains under pressure and is once again in new lows for the year – it is eroding the base of the 15 month down channel at .8903. 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.Rallies will find initial resistance at .8967 the 3rd October and the market will remain directly offered below here.”
USD/CHF recovers as EUR/USD loses sight ahead of the US durable goods data
The USD/CHF is trading steadily on the upper level in European trading session, recovering from its downtrend shift on Asia. While risk sentiment is still ‘off’ across the board, as market participants mostly concentrate on looming PBoC tightening - shrugging off the German IFO releases, UK GDP – the cross managed to gather again uptrend momentum mostly due to the sharp fall of the EUR/USD below the 1.3800 area. Briefly, it is widely known that there is a strong, heavy inversely correlation between the EUR/USD and the USD/CHF. Therefore, traders should not be taken aback by the fact that as EUR/USD extends its losses below 1.3800, the USD/CHF might continue to set up a bullish tone.
Technical Aspects on the USD/CHF
Karen Jones Head Technical Analyst of Commerzbank, mentions that the “USD/CHF remains under pressure and is once again in new lows for the year – it is eroding the base of the 15 month down channel at .8903. 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.Rallies will find initial resistance at .8967 the 3rd October and the market will remain directly offered below here.”