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Forex pairs in this Article » USD/CHF (Athens) – The USD/CHF continues to set up a strong uptrend behavior due to both Yellen’s nomination and a glitter of hope that finally the US will find even at the 12th hour a solution.

USD/CHF spikes above 0.9100 area on reemerging hopes on US debt

The USD/CHF is heading steadily upwards since the kick off of the early trading session due to new hopes that finally the US will find a solution on the debt-ceiling issue. What’s more, the mere whiff of the scent that a default could be avoided has investors surreptitiously putting capital back into higher yielding FX, thus, closing their long positions on the “Swissie”, as long as the “Japanese currency.” Thus, the USD/CHF got a solid boost since the opening of the on this glitter of hope on the US debt ceiling issue, alongside with “Yellen’s nomination” which spurred risk-on sentiment across the board. On the other hand, neither party has yet to put forward a sincere gesture.

Technical Outlook on USD/CHF

Karen Jones, Head Technical Analyst at Commerzbank suggests that the “USD/CHF has at last seen a strong rally higher – this has reached the .9130 June low, which together with the .9152 23.6% retracement will need to be overcome to introduce scope to the .9291 3 month downtrend. Intraday dips should find minor support at .9065 ahead of .9028.” Our personal aspect of view is that traders interested in the USD/CHF, should by far keep an eye to the EUR/USD, due to the fact that both crosses are almost absolutely heavily inversely correlated. As a matter of fact, traders should be not taken aback by the EUR/USD downtrend shift, as it is very plausible since the USD/CHF is taking the upper level.
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