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21 Oct 2013
USD/CHF moves on the upper level on greenback strengthening
FXstreet.com (Athens) – The USD/CHF is trading higher since the early opening of Asian trading session, mainly both to a corrective uptrend behavior as the cross had been under severe pressure last week, as well as to a generalized uptrend recovery of the American dollar.
The USD/CHF is trading upwards on early Monday trading session, after having lost roughly 100 pips last week. Market participants could well attribute the uptrend movement of the cross to the generalized recovery of the American dollar since the kick off of the Asian trading session ahead of a very busy week full of a veritable feast of data. While the USD/CHF is still well above the 90.00 handle, the immense uptrend EUR/USD behavior might continue to create pressure on the USD/CHF. Taken for granted that after the last developments on the US budget-deal, the Fed will continue with QE at full pelt for longer - alongside with Friday’s boosting Chinese GDP data – we understand that risk-appetite strikes well back. Thus, the downtrend of the cross is well expected to prevail in the forthcoming weeks, therefore investors should not be taken aback if the cross moved towards 0.8930 area. Ahead of, today we have US existing home sales but tomorrow is “Super Tuesday” as a lot of US data will be released with the NFP’s supposed to be the key driver.
Technical Aspects on the USD/CHF
Traders interested in the cross, should by far take into major consideration that there is a heavy almost – absolute – inverse correlation between the USD/CHF and the EUR/USD pairs. Thus, it is of significant importance to look simultaneously on both crosses when trading. At the time of writing the cross is trading at 0.9026, up 0.11%. The FXstreet.com Trend Index shows the pair to be slightly bearish in the 15-minutes timeframe chart. Daily pivot point support can be found at 0.9005 0.8946, 0.8935, and resistance at 0.9086, 0.9109 and 0.9131, respectively.
The USD/CHF is trading upwards on early Monday trading session, after having lost roughly 100 pips last week. Market participants could well attribute the uptrend movement of the cross to the generalized recovery of the American dollar since the kick off of the Asian trading session ahead of a very busy week full of a veritable feast of data. While the USD/CHF is still well above the 90.00 handle, the immense uptrend EUR/USD behavior might continue to create pressure on the USD/CHF. Taken for granted that after the last developments on the US budget-deal, the Fed will continue with QE at full pelt for longer - alongside with Friday’s boosting Chinese GDP data – we understand that risk-appetite strikes well back. Thus, the downtrend of the cross is well expected to prevail in the forthcoming weeks, therefore investors should not be taken aback if the cross moved towards 0.8930 area. Ahead of, today we have US existing home sales but tomorrow is “Super Tuesday” as a lot of US data will be released with the NFP’s supposed to be the key driver.
Technical Aspects on the USD/CHF
Traders interested in the cross, should by far take into major consideration that there is a heavy almost – absolute – inverse correlation between the USD/CHF and the EUR/USD pairs. Thus, it is of significant importance to look simultaneously on both crosses when trading. At the time of writing the cross is trading at 0.9026, up 0.11%. The FXstreet.com Trend Index shows the pair to be slightly bearish in the 15-minutes timeframe chart. Daily pivot point support can be found at 0.9005 0.8946, 0.8935, and resistance at 0.9086, 0.9109 and 0.9131, respectively.