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Forex pairs in this Article » USD/CHF (London) - USD/CHF fell over 300 points from 0.9740 yesterday to reach a low of 0.9405 after the FOMC minutes.

USD/CHF was one of the worst performers on a broad based sell off in the dollar post FOMC minutes. Kit Juckes, Global Head of Currency Stratergy for Societete Generale said the FOMC minutes had set the stage by giving us a re-run of the message that had been delivered in the post-meeting press conference and do nothing to alter a view that ‘tapering’ will be announced in September. “What I heard from Bernanke was that tapering isn’t tightening (Wow!), that policy will remain very accommodative for a very long time, and that higher yields could alter taper-timing. I don’t see that as a radical but it has put a ceiling above yields for now, and markets can revert to data-watching mode”.

USD/CHF should stabalise

Karen Jones, Chief Analyst at Commerzbank said USD/CHF has collapsed lower selling off towards its 6-week uptrend at 0.9387. “The Elliot wave count on the daily chart suggests that the market should stabilise here and this area is reinforced by Fibonacci support at 0 .9368 and the 200 day ma at .9356.” She explained that rallies will need to regain the 0.9568 March high in order to retarget the 0.9753 July high. “Any erosion of the .9356 200 day ma should provoke another step down to the .9269/78.6% retracement”.
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