4 Nov 2013
USD/CHF retreats near to opening levels as EUR/USD strikes back
FXstreet.com (Athens) – The USD/CHF had been heading steadily upwards since the initial kick off of the Wellington trading session, but the last couple of hours has lost its uptrend momentum mostly due to the upward spike of the EUR/USD.
USD/CHF pares most of its earlier gains as EUR/USD overcomes 1.3500 handle
As it is widely known, the EUR/USD and the USD/CHF have an immense inverse correlation, which is almost absolutely negative touching -0.93. Taking for granted this relationship, markets participants should not be taken aback as well after the EUR/USD was boosted above 1.3500 handle, the USD/CHF dragged down near to its initial opening level.
Technical Perspectives on the USD/CHF
It is of major importance to point out that the USD/CHF managed to overcome clearly the 0.9104 area (38.2% Fibonacci level). At the time of writing the cross is struggling to remain above the 0.9113 (daily 50-EMA), but the cross might need a decent close the 0.9170 area (50%Fibobacci, trend line from February as of 2012), while a close below the 0.9022 (23.6% of the Fibonacci level), would might bring the pair exposed to the 0.8899 level (daily low as of October 24). Karen Jones Head Technical Analyst of Commerzbank suggests that “The market has reached its 55 day ma at .9144 and is approaching our initial target which is the 3 month resistance line at .9165 and the .9178 mid October high. We would allow for this to hold the initial test.”
USD/CHF pares most of its earlier gains as EUR/USD overcomes 1.3500 handle
As it is widely known, the EUR/USD and the USD/CHF have an immense inverse correlation, which is almost absolutely negative touching -0.93. Taking for granted this relationship, markets participants should not be taken aback as well after the EUR/USD was boosted above 1.3500 handle, the USD/CHF dragged down near to its initial opening level.
Technical Perspectives on the USD/CHF
It is of major importance to point out that the USD/CHF managed to overcome clearly the 0.9104 area (38.2% Fibonacci level). At the time of writing the cross is struggling to remain above the 0.9113 (daily 50-EMA), but the cross might need a decent close the 0.9170 area (50%Fibobacci, trend line from February as of 2012), while a close below the 0.9022 (23.6% of the Fibonacci level), would might bring the pair exposed to the 0.8899 level (daily low as of October 24). Karen Jones Head Technical Analyst of Commerzbank suggests that “The market has reached its 55 day ma at .9144 and is approaching our initial target which is the 3 month resistance line at .9165 and the .9178 mid October high. We would allow for this to hold the initial test.”