6 Nov 2013
USD/CHF in consolidation amidst risk-on mood
FXstreet.com (Athens) – The USD/CHF was trading under pressure overnight as the American dollar was under pressure alongside with JPY, but is now moving mostly sideways.
The USD/CHF has been trading slightly higher but mostly sideways the last couple of hours. Briefly, the USD/CHF is hovering around 0.9114 area amidst risk appetite environment. Market participants should take upon consideration that the upwards trend shift of the EUR/USD has also put additional pressure on the USD/CHF (the correlation between the two crosses is approximately -0.93). Last but not least, the softer American dollar can as well attributed to the weaker USD tone came as dovish voices were heard from the Fed with Williams (non-voter) noting that economic data has been disappointing and that greater conviction of that economic growth should be achieved before QE tapering begins.
Technical Perspective on the USD/CHF
Karen Jones Head Technical Analyst of Commerzbank says that “USD/CHF continues to sit just below its 55 day ma at .9141 and 3 month resistance line at .9151…We suspect that we are in the embryonic stages of a significant turn, the market has recently reversed just ahead of the 38.2% retracement of the move up from the 2011 low, which is located at .8862. Above .9178 will add weight to this idea and target the 0.9319 200 day ma.”
The USD/CHF has been trading slightly higher but mostly sideways the last couple of hours. Briefly, the USD/CHF is hovering around 0.9114 area amidst risk appetite environment. Market participants should take upon consideration that the upwards trend shift of the EUR/USD has also put additional pressure on the USD/CHF (the correlation between the two crosses is approximately -0.93). Last but not least, the softer American dollar can as well attributed to the weaker USD tone came as dovish voices were heard from the Fed with Williams (non-voter) noting that economic data has been disappointing and that greater conviction of that economic growth should be achieved before QE tapering begins.
Technical Perspective on the USD/CHF
Karen Jones Head Technical Analyst of Commerzbank says that “USD/CHF continues to sit just below its 55 day ma at .9141 and 3 month resistance line at .9151…We suspect that we are in the embryonic stages of a significant turn, the market has recently reversed just ahead of the 38.2% retracement of the move up from the 2011 low, which is located at .8862. Above .9178 will add weight to this idea and target the 0.9319 200 day ma.”