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Forex pairs in this Article » USD/CHF (Athens) – The USD/CHF is struggling to hold the 0.8900 area amidst a risk off environment that is carried from the Asian trading session, as well as to the sharp uptrend move of the EUR/USD.

USD/CHF struggles to hold 0.8900 level due to the EUR/USD sharp uptrend rise, risk-off sentiment

It is widely known that there is a strong, heavy inversely correlation between the EUR/USD and the USD/CHF. Therefore, traders should not be taken aback by the fact that as EUR/USD climbs higher and higher, the USD/CHF continues to set up a bearish tone. What’s more, the China “jitters” have inspired a risk-off sentiment across the board, therefore it is plausible that the safe haven swissie draws the attention of the market participants. All in all, as long as the USD/CHF is trading below the 2012 lows as of 0.8931, the downtrend might continue to prevail.

Technical Aspects on the USD/CHF

Karen Jones Head Technical Analyst of Commerzbank, mentions that the “USD/CHF remains under pressure and is once again in new lows for the year – it is eroding the base of the 15 month down channel at .8903. 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.”
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