14 Oct 2013
EUR/CHF above 61.8% Fibonacci area (1.2338) after solid Swiss data
FXstreet.com (Athens) – The EUR/CHF has been trading constantly higher since the kick off of the Asian trading day –despite the continuing US fiscal issue “jitters”– and after the solid data released earlier regarding the Switzerland economy the cross moved further higher.
EUR/CHF broke 1.2338 (61.8% Fib. retracement 1.2215 – 1.2415) amidst US budget impasse
The EUR/CHF has been constantly trading upwards since the early Asian opening session on Sunday, despite the fact that we are well amidst a risk-off environment. Even though, while the US budget deadlock day on Thursday is looming closer and risk-on sentiment hits the “snooze” button (e.g. S&P 500 futures were down 0.7% in late Asian trade), the cross seems ready to test the area as of 1.2400. Traders should also bear into consideration the quotes made by SNB’s Jordan during the weekend that might also have bolstered the cross upwards trend. SNB’s Jordan said that “said minimum exchange rate is crucial tool of monetary policy,” as well as “EURCHF cap of 1.20 is to avoid a tightening of monetary conditions in Switzerland.” Last but not least, the Swiss Producer Price index released earlier, showed some – out of the blue - inflationary pressures in the country, a positive sign that boosted the cross.
Technical Outlook on EUR/CHF
Karen Jones, Head Technical Analyst at Commerzbank mentions that “the EUR/CHF continues to rebound off the 1.2217/15 June and September lows and tests the six month resistance line at 1.2351.Should it be breached, the Fibonacci cluster at 1.2372/81 will be targeted as well. Dips should find support around the 1.2278/66 August lows ahead of the 1.2217/15 June and September lows.”
EUR/CHF broke 1.2338 (61.8% Fib. retracement 1.2215 – 1.2415) amidst US budget impasse
The EUR/CHF has been constantly trading upwards since the early Asian opening session on Sunday, despite the fact that we are well amidst a risk-off environment. Even though, while the US budget deadlock day on Thursday is looming closer and risk-on sentiment hits the “snooze” button (e.g. S&P 500 futures were down 0.7% in late Asian trade), the cross seems ready to test the area as of 1.2400. Traders should also bear into consideration the quotes made by SNB’s Jordan during the weekend that might also have bolstered the cross upwards trend. SNB’s Jordan said that “said minimum exchange rate is crucial tool of monetary policy,” as well as “EURCHF cap of 1.20 is to avoid a tightening of monetary conditions in Switzerland.” Last but not least, the Swiss Producer Price index released earlier, showed some – out of the blue - inflationary pressures in the country, a positive sign that boosted the cross.
Technical Outlook on EUR/CHF
Karen Jones, Head Technical Analyst at Commerzbank mentions that “the EUR/CHF continues to rebound off the 1.2217/15 June and September lows and tests the six month resistance line at 1.2351.Should it be breached, the Fibonacci cluster at 1.2372/81 will be targeted as well. Dips should find support around the 1.2278/66 August lows ahead of the 1.2217/15 June and September lows.”