7 Nov 2013
EUR/CHF stuck in a tight range
FXstreet.com (Athens) – The EUR/CHF did not pay much attention to the dismal German industrial data, as well as on the unchanged monetary policy on behalf of ECB.
The EUR/CHF is hovering amidst a very congested area of approximately 2 pips (1.2323-1.2325), indicating that the pair is sitting on the fence looking for a directional fundamental driving force, that would probably come from US data as well as on behalf of ECB. Regarding the Euro land, German industrial production lost some momentum in September, dropping by 0.9% on a monthly basis but the pair stayed muted on the release. Earlier, 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. What’s more there was a very slight movement in FX reserves figures pertaining to the Swiss economy (434.7 billions from 432.4billions). Reading between the lines the tiny change in the FX reserve figures indicates the SNB did not intervene the previous month.
Technical Aspects on the EUR/CHF
The cross should manage to make a decent close above the 200-hourly SMA (1.2324) to trade higher to the barrier as of 1.2387 (the downtrend line from July). On the bear side, a close below the 30-day SMA (1.2311), would probably drag the cross further downwards to the key support area as of 1.2235.
The EUR/CHF is hovering amidst a very congested area of approximately 2 pips (1.2323-1.2325), indicating that the pair is sitting on the fence looking for a directional fundamental driving force, that would probably come from US data as well as on behalf of ECB. Regarding the Euro land, German industrial production lost some momentum in September, dropping by 0.9% on a monthly basis but the pair stayed muted on the release. Earlier, 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. What’s more there was a very slight movement in FX reserves figures pertaining to the Swiss economy (434.7 billions from 432.4billions). Reading between the lines the tiny change in the FX reserve figures indicates the SNB did not intervene the previous month.
Technical Aspects on the EUR/CHF
The cross should manage to make a decent close above the 200-hourly SMA (1.2324) to trade higher to the barrier as of 1.2387 (the downtrend line from July). On the bear side, a close below the 30-day SMA (1.2311), would probably drag the cross further downwards to the key support area as of 1.2235.