Forex: USD/CHF falls from highs on “fiscal cliff” relief

FXstreet.com (Barcelona) - The surge of the greenback found its high against the Swissy at 0.9340 as the US new home sales data was released, catching investors off guard with a downward revision of the September figure, from 0.389M to 0.369M. However, the "risk off" bias switched quickly to a "risk on" wave following the words of Republican Boehner.

The Speaker of the United States House of Representatives, John Boehner, is reported to have said he's willing to put revenues on the table if accompanied by spending cuts, according to Adam Button, at Forexlive.com. A relief for investors as they become increasingly sensitive to the "fiscal cliff" theme as the year ends. President Barack Obama will speak at 17:35 GMT.

The pair has gone as low as 0.9313, for now. "The pair regains important barrier at 0.9330, previous low / Fib 38.2% of 0.9456/0.9253, on a break above initial 0.9300 resistance. This brings more positive tone into near-term outlook and averts immediate risk of slide towards key support at 0.9213", wrote Windsor Brokers analyst Slobodan Drvenica, requiring an extension through 0.9350 to confirm recovery and possibly open way towards key 0.9400 barrier and breakpoint.