30 Oct 2013
USD/CHF looks higher as EUR/USD is still under pressure
FXstreet.com (Athens) – The USD/CHF continues to trade upwards for a third consecutive day, mainly to the sharp EUR/USD pullback below 1.3800.
USD/CHF upwards as EUR/USD remains well under pressure; is a corrective trend or an uptrend reversal?
The USD/CHF has been trading upwards since the kick off of the Wellington trading session, taking advantage of the downtrend shift of the EUR/USD, but also showing that is re gathering uptrend momentum, testing earlier the 0,9000 area. Traders interested in the cross, should by far take into major consideration that there is a heavy almost – absolute – inverse correlation between the USD/CHF and the EUR/USD pairs. Thus, it is of significant importance to look simultaneously on both crosses when trading. Ahead of we have a slew of US data (US CPI, US ADP Payrolls), as well as Swiss leading indicator and Swiss Consumption data.
Technical Aspects on the USD/CHF
Karen Jones Head Technical Analyst of Commerzbank, mentions that the ”USD/CHF continues to gingerly climb higher. The market last week charted a new low which was accompanied by a divergence of its daily RSI, this reflects a loss of downside momentum. It has also charted a 13 count on the TD combo, which warns of impending reversal, and it has also 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. Rallies have eroded initial resistance offered by .8967 the 3rd October
low and target the .9076 resistance line and then the .9186 3 month downtrend.”
USD/CHF upwards as EUR/USD remains well under pressure; is a corrective trend or an uptrend reversal?
The USD/CHF has been trading upwards since the kick off of the Wellington trading session, taking advantage of the downtrend shift of the EUR/USD, but also showing that is re gathering uptrend momentum, testing earlier the 0,9000 area. Traders interested in the cross, should by far take into major consideration that there is a heavy almost – absolute – inverse correlation between the USD/CHF and the EUR/USD pairs. Thus, it is of significant importance to look simultaneously on both crosses when trading. Ahead of we have a slew of US data (US CPI, US ADP Payrolls), as well as Swiss leading indicator and Swiss Consumption data.
Technical Aspects on the USD/CHF
Karen Jones Head Technical Analyst of Commerzbank, mentions that the ”USD/CHF continues to gingerly climb higher. The market last week charted a new low which was accompanied by a divergence of its daily RSI, this reflects a loss of downside momentum. It has also charted a 13 count on the TD combo, which warns of impending reversal, and it has also 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. Rallies have eroded initial resistance offered by .8967 the 3rd October
low and target the .9076 resistance line and then the .9186 3 month downtrend.”