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4 Oct 2013
EUR/CHF downwards as the “Swissie” trades stronger than expected
FXstreet.com (Athens) – The EUR/CHFis trading downwards for a second consecutive day despite the single currency is generally highly boosted across the board.
The EUR/CHF is trading downwards for a second straight day. Traders might consider that the “Swissie” is getting stronger across the board amidst the US forthcoming debt ceiling debate, the global decline in global yields after the FOMC meeting as well as on the general weaker risk sentiment. What’s more, investors should bear in mind that news wires reveal that strong foreign investment in Swiss equity markets has also been adding appreciation pressures on the the “Swissie”, while the momentum accelerated further in September. On the other hand, the single currency generally seem to be well supported as long as data supports ECB decision to refrain from any LTRO and be very cautious against another one.
Technical Outlook on EUR/CHF
Karen Jones, Head Technical Analyst at Commerzbank mentions that the “EUR/CHF has held the 1.2217 June low for 3 times and we should allow for a deeper rebound. Rallies are now expected to find initial resistance offered by the 1.2266 August low and remain capped by the 1.2308 200 day ma. Note only above1.2315 will alleviate immediate downside pressure. Intraday charts are suggesting this rebound should terminate circa 1.2280/1.2300.This has left the market vulnerable on the downside to further losses and it targets1.2135/32, the April lows.”
The EUR/CHF is trading downwards for a second straight day. Traders might consider that the “Swissie” is getting stronger across the board amidst the US forthcoming debt ceiling debate, the global decline in global yields after the FOMC meeting as well as on the general weaker risk sentiment. What’s more, investors should bear in mind that news wires reveal that strong foreign investment in Swiss equity markets has also been adding appreciation pressures on the the “Swissie”, while the momentum accelerated further in September. On the other hand, the single currency generally seem to be well supported as long as data supports ECB decision to refrain from any LTRO and be very cautious against another one.
Technical Outlook on EUR/CHF
Karen Jones, Head Technical Analyst at Commerzbank mentions that the “EUR/CHF has held the 1.2217 June low for 3 times and we should allow for a deeper rebound. Rallies are now expected to find initial resistance offered by the 1.2266 August low and remain capped by the 1.2308 200 day ma. Note only above1.2315 will alleviate immediate downside pressure. Intraday charts are suggesting this rebound should terminate circa 1.2280/1.2300.This has left the market vulnerable on the downside to further losses and it targets1.2135/32, the April lows.”