7 Nov 2013
USD/CHF sideways after weaker Swiss data
FXstreet.com (Athens) – The USD/CHF is trading at a very confined area the past couple of hours after slightly weaker Swiss data released and ahead of ECB’s conference, US 3rd quarter’s GDP release.
USD/CHF sidelines alongside with EUR/USD; Swiss data slightly weaker than expected
The USD/CHF has been trading slightly higher during the European trading session, apart from the last couple of hours where it has been captured amidst a sideways movement. Regarding the Swiss data, the SECO Consumer Confidence index released slightly worse than expected at (-5) in Oct versus (-4) expected and (-9) in September, while the Budget Balance droped by 7.4bn deficit in October from a 28.3bn surplus in the prior month. However, it might be wiser that market participants should focus mostly on the upcoming US data alongside with the ECB’s decision.
Technical Aspects on the USD/CHF
The USD/CHF is trading at a very congested area capped by the 3-month resistance line at 0.9150 area. The cross seems to need to overcome the barrier as of the 0.9178 (October high), in order to move towards the 0.9284 area (23.60% Fibonacci retracement of the move upwards the 2011 low, which is located at 0.8863 zone). Last but not least, traders should not be caught off guard of the heavy inverse correlation (roughly -0.93) between the USD/CHF and the EUR/USD; thus the USD/CHF might need a heavy pressure on the EUR/USD to move towards the 0.9284 area.
USD/CHF sidelines alongside with EUR/USD; Swiss data slightly weaker than expected
The USD/CHF has been trading slightly higher during the European trading session, apart from the last couple of hours where it has been captured amidst a sideways movement. Regarding the Swiss data, the SECO Consumer Confidence index released slightly worse than expected at (-5) in Oct versus (-4) expected and (-9) in September, while the Budget Balance droped by 7.4bn deficit in October from a 28.3bn surplus in the prior month. However, it might be wiser that market participants should focus mostly on the upcoming US data alongside with the ECB’s decision.
Technical Aspects on the USD/CHF
The USD/CHF is trading at a very congested area capped by the 3-month resistance line at 0.9150 area. The cross seems to need to overcome the barrier as of the 0.9178 (October high), in order to move towards the 0.9284 area (23.60% Fibonacci retracement of the move upwards the 2011 low, which is located at 0.8863 zone). Last but not least, traders should not be caught off guard of the heavy inverse correlation (roughly -0.93) between the USD/CHF and the EUR/USD; thus the USD/CHF might need a heavy pressure on the EUR/USD to move towards the 0.9284 area.