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Forex pairs in this Article » USD/CHF
FXstreet.com (Athens) – The USD/CHF has been trading upwards - even slightly – since the kick off of the Asian trading session, depicting nicely the profit-taking after the largest daily drop of DXY in 3 weeks yesterday.

USD/CHF still holds the 0.9000 support reflecting profit taking on greenback

The USD/CHF is trading higher in the middle European trading session, amidst continuing US worries on the debt ceiling and after solid Switzerland economic data released. Elaborating on, the unemployment rate in Switzerland released earlier exactly at the same levels as forecasted, while the headline CPI was also released in line with expectations. However, the CPI showed a looming uptrend in inflationary pressures, mainly buoyed by the higher prices in gas, energy and clothing. In addition to the above, retail sales announced at a really boosting figure, but still the soft CPI is not good enough, to convince SNB to begin pricing in a more normalized policy. Last but not least, SNB’s Jordan will talk later on issues pertaining to “reconciling with exchange rate.”

Technical Outlook on USD/CHF

Karen Jones, Head Technical Analyst at Commerzbank suggests that the “USD/CHF held steady following its recent erosion of the accelerated downtrend and we continue to favour recovery. In order to negate current downside pressure the market will need to regain .9130/52, the June low and the 23.6% retracement of the move down from July. A close back above here will signal a return to the 3 month downtrend at .9305. While capped by .9130/52, we remain unable to rule out further losses to the .8931/.8909 zone (2012 low and the base of a one year down channel), we look for this to hold the downside and provoke reversal.”
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