4 Sep 2013
USD/CHF is trading nearly its daily highs
FXstreet.com (Athens) - The USD/CHF is heading upwards on Asian trading session, due to the overall strengthening of the American dollar across the board.
Will the USD/CHF sustain its gains after the US data release?
The pair is trading to the upper lever during the Asian trading session, ahead of crucial US data, i.e. weekly mortgage applications, trade data, vehicle sales and the day’s ‘highlight’, the Fed’s latest Beige Book. While, yesterday the pair lost solid ground on ‘false’ alarm due to inaccurate Russian news, it soon managed to pare its losses and continues to set up a upward trend for a third consecutive day. However, “Syrian missile headlines” highlighted yesterday how sensitive market is right now. Therefore traders should not in any case forget, the appealing of the ‘Swissie’ as a safe haven currency, as the military strike on Syria seems to have halted temporarily. Last but not least, investors might take into deep consideration the highly opposite correlation between EUR/USD and USD/CHF.
Technical Outlook and Strategic bias on USD/CHF
Stephen Gallo from BMO FX Strategy Daily, suggests that “the underlying bid tone in the USD reflects the fact that economic data from the US this week are again expected to be broadly consistent with a September Fed taper." Gallo makes the assumption that a potential bond buying reduction in the tune of $15.0-$25.0 billion this September seems to be realistic.
Gallo adds: "On the assumption that we are in something of a “lull” in the Syria situation until next week, we’re content to buy USD/CHF on the dips as long as US data don’t surprise to the worse”.
At the time of writing the pair is trading at 0.9373, up 0.08%, nearly its daily highs (0.9380). The FXstreet.com Trend Index shows the pair to be slightly bullish in the 15 minutes chart. Daily pivot point support can be found at 0.9326, 0.9309, 0.9279 and resistance at 0.9397, 0.9419 and 0.9444, respectively.
Will the USD/CHF sustain its gains after the US data release?
The pair is trading to the upper lever during the Asian trading session, ahead of crucial US data, i.e. weekly mortgage applications, trade data, vehicle sales and the day’s ‘highlight’, the Fed’s latest Beige Book. While, yesterday the pair lost solid ground on ‘false’ alarm due to inaccurate Russian news, it soon managed to pare its losses and continues to set up a upward trend for a third consecutive day. However, “Syrian missile headlines” highlighted yesterday how sensitive market is right now. Therefore traders should not in any case forget, the appealing of the ‘Swissie’ as a safe haven currency, as the military strike on Syria seems to have halted temporarily. Last but not least, investors might take into deep consideration the highly opposite correlation between EUR/USD and USD/CHF.
Technical Outlook and Strategic bias on USD/CHF
Stephen Gallo from BMO FX Strategy Daily, suggests that “the underlying bid tone in the USD reflects the fact that economic data from the US this week are again expected to be broadly consistent with a September Fed taper." Gallo makes the assumption that a potential bond buying reduction in the tune of $15.0-$25.0 billion this September seems to be realistic.
Gallo adds: "On the assumption that we are in something of a “lull” in the Syria situation until next week, we’re content to buy USD/CHF on the dips as long as US data don’t surprise to the worse”.
At the time of writing the pair is trading at 0.9373, up 0.08%, nearly its daily highs (0.9380). The FXstreet.com Trend Index shows the pair to be slightly bullish in the 15 minutes chart. Daily pivot point support can be found at 0.9326, 0.9309, 0.9279 and resistance at 0.9397, 0.9419 and 0.9444, respectively.