Forex: USD/CHF retraces Asian rally on Merkel
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USD/CHF
FXstreet.com (Barcelona) - Despite no decisions made during the Eurogroup meeting, triggering a risk aversion rally from 0.9400 to 0.9450, there were still positive remarks coming from EU's Juncker and IMF's Lagarde. Recently, German Chancellor Angela Merkel defended that lower rates and increasing EFSF guarantees by ¬10B are the solution to Greece's financing hole through 2016.
The USDCHF was already retreating from resistance as the European session developed, but these remarks are boosting risk sentiment and weakening the greenback, while the Swissy remains pegged to the euro.
"Retracement of over 61.8% of 0.9489/0.9390 fall, turns hourly structure positive, however, failure to regain previous high at 0.9489, would risk lower top and fresh weakness, as 4h indicators still hold in the negative territory", wrote Windsor Brokers analyst Slobodan Drvenica.
The USDCHF was already retreating from resistance as the European session developed, but these remarks are boosting risk sentiment and weakening the greenback, while the Swissy remains pegged to the euro.
"Retracement of over 61.8% of 0.9489/0.9390 fall, turns hourly structure positive, however, failure to regain previous high at 0.9489, would risk lower top and fresh weakness, as 4h indicators still hold in the negative territory", wrote Windsor Brokers analyst Slobodan Drvenica.
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