23 Oct 2013
USD/CHF ‘eyes’ 2012 lows at 0.8931 amidst risk-off flare up
FXstreet.com (Athens) – The USD/CHF has been trading muted and amidst deep volatility since the early European trading session due to looming Chinese liquidity concerns.
USD/CHF flirts with 2012 lows as Chinese liquidity ‘jitters’ arise
The USD/CHF is trading slightly downwards on Thursday amidst a deep risk-off sentiment. However taken for granted that the second largest country all over the globe rattled the markets, the cross could have been under higher pressure. As a matter of fact, the cross is standing at a very critical technical point; it is mostly lying muted on the 0.8950 area, thus just over 2012 lows at 0.8931. Traders should bear in mind that if the liquidity ‘jitters’ on behalf of China continue to set up a bearish tone, the floor at 0.8931 might be opened. In such a case, EUR/USD will probably climb even higher, as it is widely known that the two crosses are heavily inversely correlated.
Technical Perspective on the USD/CHF
Karen Jones Head Technical Analyst of Commerzbank, mentions that the “USD/CHF is in new lows for the year and attention has reverted to the February 2012 low at .8931 and the base of the 15 month down channel at .8903. Directly below here lies the 38.2% retracement of the move up from the 2011 low, this is located at .8862. These are 2 major supports and we are alert to the idea of reversal down here. Intraday charts are suggesting that we may see some consolidation today.”
USD/CHF flirts with 2012 lows as Chinese liquidity ‘jitters’ arise
The USD/CHF is trading slightly downwards on Thursday amidst a deep risk-off sentiment. However taken for granted that the second largest country all over the globe rattled the markets, the cross could have been under higher pressure. As a matter of fact, the cross is standing at a very critical technical point; it is mostly lying muted on the 0.8950 area, thus just over 2012 lows at 0.8931. Traders should bear in mind that if the liquidity ‘jitters’ on behalf of China continue to set up a bearish tone, the floor at 0.8931 might be opened. In such a case, EUR/USD will probably climb even higher, as it is widely known that the two crosses are heavily inversely correlated.
Technical Perspective on the USD/CHF
Karen Jones Head Technical Analyst of Commerzbank, mentions that the “USD/CHF is in new lows for the year and attention has reverted to the February 2012 low at .8931 and the base of the 15 month down channel at .8903. Directly below here lies the 38.2% retracement of the move up from the 2011 low, this is located at .8862. These are 2 major supports and we are alert to the idea of reversal down here. Intraday charts are suggesting that we may see some consolidation today.”