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Forex pairs in this Article » USD/CHF (Athens) – The USD/CHF tries today to regain an uptrend momentum in order to recapture the 0.9000 area, after hitting yesterday new year’s low.

USD/CHF slightly upwards; will the cross make or break it amidst the looming debt ceiling?

The USD/CHF gathered again a slight uptrend momentum, hovering around 0.9010 area after yesterday’s collapse (i.e. hitting new year’s low). While the war of words between US politicians is really starting to heat up as the possibility of crashing into the debt ceiling becomes more of a probability – but rather a reality – the USD/CHF might be under heavy pressure for a long-term period. Today due to the US government’s shutdown we are ahead of a very light calendar data day, but the focus remains on the greenback, as it had been taken a bit of a bath in the last few weeks. All in all, without a resolution the emerging debt ceiling headline as of 17th October is approaching, therefore markets may not be that tranquil.

Technical Outlook on the USD/CHF

Karen Jones, Head Technical Analyst at Commerzbank suggests that the “USD/CHF remains under pressure and if short keep stops tight. It is currently dominated by its accelerated downtrend at .9053 and the June low at .9130, a close back above here is needed to alleviate the downside. It targets the .8931/12 2012 low and base of the a down channel while capped here. If seen, we look for this to hold the downside and provoke reversal.” Our personal aspect of view as well depicted couple of times the recent weeks, is that the USD/CHF and the EUR/USD are highly negatively correlated. Thus, if the USD/CHF penetrates lower the 0.8935 area, then the EUR/USD will sharply break the resistance as of 1.3700 and vice versa.
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