FXStreet (Bali) - The short term setup suggests some pause against key .9138/58 resistance, according to JP Morgan FX Strategists, who despite that, remain optimistic about the medium term backdrop for the USD.

Key Quotes

"In line with the improved backdrop for the USD, the setup for USD/CHF suggests a growing risk that a deeper upside retracement can develop. Like other USD pairs though, we sense some initial pause can develop given the proximity to key resistance levels and the current overbought setup. Still, we are closely monitoring the .9135/.9158 area for signs of a deeper extension. This zone includes the 38.2% retracement from the 2013 high, as well as the key January peak."

"In line with the improved medium term setup, corrective retracements are viewed as buying opportunities. Sustained breaks would initially target the .9250/70 zone (50% retracement from the 2013 high). Short term retracements should find support in the .9038/17 zone (former high from June and recent breakout, as well as the 38.2% retracement from the July low). Still, the .8955 area July breakout should be a max if a more sustained advance is in the cards."

Related Articles
  1. Investing News

    China’s Forex Reserves Dropped Significantly

    China’s forex​ reserves dropped by a record $93.9 billion at the end of August to $3.56 trillion because the Central Bank has been selling dollars to provide a cushion to the falling yuan​
  2. Forex

    The Pros and Cons of a Fully Convertible Rupee

    Amid the rising economic power of India, the talks of making the Indian currency fully convertible are gaining momentum. We look at the pros and cons.
  3. Forex Fundamentals

    Chinese Yuan an Unlikely Reserve Currency

    As the world's second largest economy, China's challenge to America’s dominance includes a push to make the yuan (RMB), the world’s reserve currency. Whether it can do that now is unclear.
  4. Economics

    How Currency Enforcement Helped Sink The Trans-Pacific Partnership (TTP)

    One particular barrier to trade that has received much attention of late and caused delays in negotiations of the TPP is exchange-rate manipulation, by which a country artificially devalues its ...
  5. Forex

    Top U.S Forex News Sites

    Breaking news moves forex markets. Here are the top U.S. sites for tracking forex news.
  6. Investing

    Financial News Comparison: Bloomberg Vs. Reuters

    Access to financial information has grown with the expansion of digital news. Bloomberg and Thomson Reuters lead the pack, claiming a majority of the business information market.
  7. Economics

    Who Benefits From South Korea's Lowered Interest Rates?

    South Korea is the latest country to cut interest rates in an attempt to stimulate economic growth.
  8. Forex Education

    The Top Uses For P2P Currency Exchange

    Peer-to-peer (P2P) currency exchange networks offer a viable and cheaper alternative for buying and selling currencies.
  9. Forex

    Steps To Open An Offshore Forex Account

    Here is a simple breakdown of how to open an offshore forex account for US-based users, including legal requirements.
  10. Entrepreneurship

    Top Forex Trading Apps

    A brief overview of the top apps that help forex traders with on time information, charts and more.

You May Also Like

Trading Center