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Forex pairs in this Article » USD/CHF (Athens) – The USD/CHF is trading sharply upwards today despite US debt talks have been stalled and the US debt-default on its own is looming ferociously.

USD/CHF ready to test the 0.9154 level (38.2% Fibonacci retracement) despite debt talks stall

The USD/CHF is trading on the upper level on the early European trading session despite that earlier Fitch has warned about the U.S. including closer to its first ever sovereign debt default. Elaborating on despite Fitch warned on US Rating, the cross behave mostly as if a resolution will be achieved even at the 12th hour. Traders should bear in mind that today we are ahead of Switzerland ZEW data release, while the data might be overshadowed by the US fiscal issue talk developments.

Technical Perspective on USD/CHF

Traders interested in the cross, should by far take into major consideration that there is a heavy almost – absolute – inverse correlation between the USD/CHF and the EUR/USD pairs. Thus, it is of significant importance to look simultaneously on both crosses when trading. Axel Rudolph, Head Technical Analyst at Commerzbank suggests that the “USD/CHF’s surge through key resistance at .9130/54 (June low and the 38.2% Fibonacci retracement of the September-to-October decline) is short term bullish. The .9174 August 8 low has already been hit with the .9208/12 resistance area (55 day moving average and 50% retracement) being back in the picture as well. Another upside target is the .9262/69 region where a 38.2%/61.8% Fibonacci cluster and the four month resistance line come together.”
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