29 Jul 2013
EUR/CHF flat around 1.2330
FXstreet.com (Edinburgh) -The Swiss franc is trading almost unchanged on Monday, with the EUR/CHF hovering over 1.2330 after attempting a bounce to 1.2340/45.
EUR/CHF potential upside ahead
The cross is extending its decline from July peaks beyond 1.2450, although keeping the ytd broader 1.2100-1.2500 range. In the opinion of Mansoor Mohi-uddin, Director of FX Strategy at UBS, “The Swiss franc continues to be supported by Switzerland's very high current account surplus. But other structural sources of support – Swiss banks reducing their balance sheets by selling foreign loans and Swiss fund managers refusing to buy foreign portfolio assets – are starting to wane… That suggests EURCHF is likely to keep its current bid tone. Investors should thus be prepared for the risks of spikes in the cross, breaching this year’s highs of 1.26-1.27”.
EUR/CHF levels to consider
The cross is now flat at 1.2330 with the next resistance at 1.2355 (MA10d) ahead of 1.2384 (high Jul.25) and then 1.2403 (highs Jul.15/16/24). On the downside, a break below 1.2312 (MA100d) would bring 1.2278 (low Jul.3) and finally 1.2260 (low Jun.27).
EUR/CHF potential upside ahead
The cross is extending its decline from July peaks beyond 1.2450, although keeping the ytd broader 1.2100-1.2500 range. In the opinion of Mansoor Mohi-uddin, Director of FX Strategy at UBS, “The Swiss franc continues to be supported by Switzerland's very high current account surplus. But other structural sources of support – Swiss banks reducing their balance sheets by selling foreign loans and Swiss fund managers refusing to buy foreign portfolio assets – are starting to wane… That suggests EURCHF is likely to keep its current bid tone. Investors should thus be prepared for the risks of spikes in the cross, breaching this year’s highs of 1.26-1.27”.
EUR/CHF levels to consider
The cross is now flat at 1.2330 with the next resistance at 1.2355 (MA10d) ahead of 1.2384 (high Jul.25) and then 1.2403 (highs Jul.15/16/24). On the downside, a break below 1.2312 (MA100d) would bring 1.2278 (low Jul.3) and finally 1.2260 (low Jun.27).