29 Oct 2013
USD/CHF tries to retest the 0.9000 area
FXstreet.com (Athens) – Despite the fact that we are ahead of the FOMC and risk off sentiment is prevailing across the board, the USD/CHF has been in an uptrend momentum, since the early Asian trading session.
USD/CHF ignores risk-off sentiment; moves near 0.9000 resistance amidst risk-aversion
The USD/CHF has been heading north since the kick off of the Asian trading session despite the fact that RBA’s Stevens quoting about Aussie coupled with remerging Chinese jitters – well ahead of the FOMC – led to risk off mood. Traders might have taken aback that amidst a risk-off environment, as except for RBA’s Stevens statement, traders are also reluctant to take to open new positions ahead of the FOMC statement on Wednesday. On the other hand as it is widely known, there is a strong inverse correlation between EUR/USD and USD/CHF, thus as long as EUR/USD comes again under renewed pressure, market participants should not find out of the blue any upward movement of the USD/CHF.
Technical Aspects on the USD/CHF
Karen Jones Head Technical Analyst of Commerzbank, mentions that the “USD/CHF’s new low was accompanied by a divergence of its daily RSI. It has also charted a 13 count on the TD combo. It has reached the base of the 15 month down channel at .8900 and 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. Rallies will find initial resistance at .8967 the 3rd October low and will need to overcome this to target the .9086 resistance line and then the .9193 3 month downtrend.”
USD/CHF ignores risk-off sentiment; moves near 0.9000 resistance amidst risk-aversion
The USD/CHF has been heading north since the kick off of the Asian trading session despite the fact that RBA’s Stevens quoting about Aussie coupled with remerging Chinese jitters – well ahead of the FOMC – led to risk off mood. Traders might have taken aback that amidst a risk-off environment, as except for RBA’s Stevens statement, traders are also reluctant to take to open new positions ahead of the FOMC statement on Wednesday. On the other hand as it is widely known, there is a strong inverse correlation between EUR/USD and USD/CHF, thus as long as EUR/USD comes again under renewed pressure, market participants should not find out of the blue any upward movement of the USD/CHF.
Technical Aspects on the USD/CHF
Karen Jones Head Technical Analyst of Commerzbank, mentions that the “USD/CHF’s new low was accompanied by a divergence of its daily RSI. It has also charted a 13 count on the TD combo. It has reached the base of the 15 month down channel at .8900 and 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. Rallies will find initial resistance at .8967 the 3rd October low and will need to overcome this to target the .9086 resistance line and then the .9193 3 month downtrend.”