30 Aug 2013
USD/CHF struggling with 0.9300 level
FXstreet.com (Athens) - The USD/CHF is trading a bit downwards on early morning’s European trading session, on new fears of an imminent attack on Syria.
Will the USD/CHF remain above the crucial 0.9300 level?
On Thursday, the pair managed to gain more than 80 pips, closing above 0.9300 (0.9307, after having hit a high as of 0.9318). This was mainly due on the American dollar rally, as the greenback rallied to a more than three-week high against a basket of major currencies on Thursday after strong U.S. data emboldened the view that the Federal Reserve could begin winding down its stimulus program next month. To elaborate on, the dollar index was last 0.7 percent higher at 81.958, after earlier rising as high as 82.067, its highest level since Aug. 5. On the other hand, the btmu fx research suggest that “ the shock vote in parliament rejecting the UK government’s request for permission in principle to attack Syria has placed some doubt in there being any imminent attack on Syria. The FT is running with the story that the US could go it alone but China has warned against that andPresident Obama is likely to be very wary of unilateral action and how that would be perceived ”. Therefore, traders might find plausible the pressure on the pair as fear for an imminent attack are striking back. Consumer confidence in the U.S might influence the trend of the pair.
Technical outlook on USD/CHF
At the time of writing, the pair is trading at 0.9295, down 0.16%, well below 0.9300 area. Commerzbank Technicals suggest that ‘‘USD/CHF has found support at 0.9147, slightly above the June low at .9130, and appears to be attempting to base. We note the divergence of the daily RSI and risks are for a near term recovery to the two month resistance line at 0.9262. This needs to be breached for the next higher 200- and 55-day moving averages at 0.9344/45 to be reached’. The FXstreet.com Trend Index shows the pair to be slightly bearish. Daily pivot point support can be found at 0.9107, 0.9085, 0.9062 and resistance at 0.9309, 0.9334, 0.9360, respectively.
Will the USD/CHF remain above the crucial 0.9300 level?
On Thursday, the pair managed to gain more than 80 pips, closing above 0.9300 (0.9307, after having hit a high as of 0.9318). This was mainly due on the American dollar rally, as the greenback rallied to a more than three-week high against a basket of major currencies on Thursday after strong U.S. data emboldened the view that the Federal Reserve could begin winding down its stimulus program next month. To elaborate on, the dollar index was last 0.7 percent higher at 81.958, after earlier rising as high as 82.067, its highest level since Aug. 5. On the other hand, the btmu fx research suggest that “ the shock vote in parliament rejecting the UK government’s request for permission in principle to attack Syria has placed some doubt in there being any imminent attack on Syria. The FT is running with the story that the US could go it alone but China has warned against that andPresident Obama is likely to be very wary of unilateral action and how that would be perceived ”. Therefore, traders might find plausible the pressure on the pair as fear for an imminent attack are striking back. Consumer confidence in the U.S might influence the trend of the pair.
Technical outlook on USD/CHF
At the time of writing, the pair is trading at 0.9295, down 0.16%, well below 0.9300 area. Commerzbank Technicals suggest that ‘‘USD/CHF has found support at 0.9147, slightly above the June low at .9130, and appears to be attempting to base. We note the divergence of the daily RSI and risks are for a near term recovery to the two month resistance line at 0.9262. This needs to be breached for the next higher 200- and 55-day moving averages at 0.9344/45 to be reached’. The FXstreet.com Trend Index shows the pair to be slightly bearish. Daily pivot point support can be found at 0.9107, 0.9085, 0.9062 and resistance at 0.9309, 0.9334, 0.9360, respectively.