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Forex pairs in this Article » USD/CHF
FXstreet.com (Athens) – The USD/CHF is heading above 0.9120 area after Fed’s Bullard mentioned that “tapering is dependent on data, there is 'cumulative progress' in the labor market.”

USD/CHF overcomes the 0.9120 handle; does Bullard welcome tapering?

The USD/CHF is moving north the last hour well after Fed’s Bullard mentioned that “tapering is dependent on data, there is 'cumulative progress' in the labor market,” as well as “doesn't see a big impact on growth from the US government shutdown.” As long as Fed’s Bullard or other FOMC members make similar quotes, it is plausible that markets will 'price in' that tapering will come ‘sooner’ than ‘later’, strengthening the greenback. What’s more, the EUR/USD was dragged down on Bullard’s positive view on US economy –interpreted by many analysts that Decemtaper is still on ‘play’- and as it is widely known, the EUR/USD and the USD/CHF have an immense inverse correlation, thus, the cross found an additional support to trade higher.

Technical Perspectives on the USD/CHF

Investors should be aware of the fact that it is of high probability that this week we will witness an increase in volatility thanks to the super-saturated economic calendar. In addition, regarding the specific cross market participants should never forget that the EUR/USD and the USD/CHF have an immense inverse correlation, which is almost absolutely negative touching -0.93. At the time of writing the cross is trading well above the 0.9130 area, but it might need a decent close as of the 0.9170 area (50%Fibobacci, trend line from February as of 2012), to move higher. On the opposite side, a close below the 0.9022 (23.6% of the Fibonacci level), would might bring the pair exposed to the 0.8899 level (daily low as of October 24).
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