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18 Oct 2013
USD/CHF still struggling despite yesterday’s collapse
FXstreet.com (Athens) – The USD/CHF is also under pressure today as the EUR/USD soars and risk-appetite hits again the “on” button.
USD/CHF under renewed pressure due to EUR/USD uptrend shift, “risk-on” sentiment
The USD/CHF is still under pressure on Friday, after having being under heavy pressure on Thursday, losing approximately 100 pips on a daily basis. While the USD/CHF is still maintain the 90.00 handle, the immense uptrend EUR/USD behavior might continue to create pressure on the USD/CHF. Taken for granted that after the last developments on the US budget-deal, the Fed will continue with QE at full pelt for longer - alongside with today’s boosting Chinese GDP data – we understand that risk-appetite strikes well back. Therefore, traders should bear in mind that the multi aged downtrend of the cross might end if EUR/USD continues to set up a bullish stance. Our personal belief is that if USD/CHF breaks the 0.8935 area, the EUR/USD will violently overcome the 1.3709 level.
Technical Aspects on the 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. At the time of writing the cross is trading at 0.9020, down 0.05%. The FXstreet.com Trend Index shows the pair to be strongly bearish in the 15-minutes timeframe chart. Daily pivot point support can be found at 0.9005 0.8946, 0.8935, and resistance at 0.9086, 0.9109 and 0.9131, respectively.
USD/CHF under renewed pressure due to EUR/USD uptrend shift, “risk-on” sentiment
The USD/CHF is still under pressure on Friday, after having being under heavy pressure on Thursday, losing approximately 100 pips on a daily basis. While the USD/CHF is still maintain the 90.00 handle, the immense uptrend EUR/USD behavior might continue to create pressure on the USD/CHF. Taken for granted that after the last developments on the US budget-deal, the Fed will continue with QE at full pelt for longer - alongside with today’s boosting Chinese GDP data – we understand that risk-appetite strikes well back. Therefore, traders should bear in mind that the multi aged downtrend of the cross might end if EUR/USD continues to set up a bullish stance. Our personal belief is that if USD/CHF breaks the 0.8935 area, the EUR/USD will violently overcome the 1.3709 level.
Technical Aspects on the 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. At the time of writing the cross is trading at 0.9020, down 0.05%. The FXstreet.com Trend Index shows the pair to be strongly bearish in the 15-minutes timeframe chart. Daily pivot point support can be found at 0.9005 0.8946, 0.8935, and resistance at 0.9086, 0.9109 and 0.9131, respectively.