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9 Oct 2013
USD/CHF moves a bit higher on Yellen nomination, slight hopes on US debt
FXstreet.com (Athens) – The USD/CHF has been trading steadily higher since the kick-off of the Asian trading session due to Yellen nomination and looming hopes on finding a solution on the US debt.
USD/CHF well above 0.9000 area, on reemerging hopes on US debt
The USD/CHF is heading steadily upwards on early European 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 today on this glitter of hope on the US debt ceiling issue. On the other hand, neither party has yet to put forward a sincere gesture. Traders should also bear in mind that Yellen is set to be nominated Fed Chair later today - at 3pm eastern time Obama should make the announcement -, which led to an initial USD sell-off that rapidly faded , with the explanation behind the move being that such Yellen news are mostly factored in the market since Summer's drop.
Technical Outlook on USD/CHF
Karen Jones, Head Technical Analyst at Commerzbank suggests that the “USD/CHF continues to hold steady and we continue to favour a recovery near term. In order to negate current downside pressure the market will need to regain .9130/52, the June low and the 23.6% retracement of the move down from July. A close back above here will signal a return to the 3 month downtrend at .9291. Our personal aspect of view is that traders should always look at both crosses when trading, as they are almost absolutely negatively correlated. Thus, if USD/CHF breaks the support as of 0.8935, the EUR/USD will probably penetrate in a violent way the resistance as of 1.3709.
USD/CHF well above 0.9000 area, on reemerging hopes on US debt
The USD/CHF is heading steadily upwards on early European 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 today on this glitter of hope on the US debt ceiling issue. On the other hand, neither party has yet to put forward a sincere gesture. Traders should also bear in mind that Yellen is set to be nominated Fed Chair later today - at 3pm eastern time Obama should make the announcement -, which led to an initial USD sell-off that rapidly faded , with the explanation behind the move being that such Yellen news are mostly factored in the market since Summer's drop.
Technical Outlook on USD/CHF
Karen Jones, Head Technical Analyst at Commerzbank suggests that the “USD/CHF continues to hold steady and we continue to favour a recovery near term. In order to negate current downside pressure the market will need to regain .9130/52, the June low and the 23.6% retracement of the move down from July. A close back above here will signal a return to the 3 month downtrend at .9291. Our personal aspect of view is that traders should always look at both crosses when trading, as they are almost absolutely negatively correlated. Thus, if USD/CHF breaks the support as of 0.8935, the EUR/USD will probably penetrate in a violent way the resistance as of 1.3709.