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30 Sep 2013
USD/CHF under pressure on US government close “jitters”
FXstreet.com (Athens) – The USD/CHF is trading on the down side since the opening of the Asian trading session on Sunday amidst rumors on the foreclosure of the US government.
The USD/CHF downwards nearly 0.9000, amidst fears that US Congress will close the US government.
The USD/CHF is sharply declining since the early Asian opening on Sunday, due to that fact that the US Congress threatens to close down the US government and possibly force a default. What’s more, taken for granted the comments being made by Fed’s top officials as well as the well depicted era of a FOMC- fully data dependent, it seems that tapering will not happen until the end of this year, this greenback weakening across the board. The great question that arises this week, is if after the NFP data release on Friday, we will witness the closure on US government.
Technical Analysis and Strategic Bias on USD/CHF
Karen Jones, Head Technical Analyst at Commerzbank suggests that “Currently our favoured view is for losses to hold over 0.9020. However we would need to see a rapid bounce back above the 0.9146 August low just to alleviate immediate downside pressure and signal a return to .9261 – the 23.6% retracement of the move down from July. Failure to hold over 0.9077, the current September low, will see USD/CHF sell off to the 0.9023 2013 low and should this also give way, then the 0.8931 2012 low.
The USD/CHF downwards nearly 0.9000, amidst fears that US Congress will close the US government.
The USD/CHF is sharply declining since the early Asian opening on Sunday, due to that fact that the US Congress threatens to close down the US government and possibly force a default. What’s more, taken for granted the comments being made by Fed’s top officials as well as the well depicted era of a FOMC- fully data dependent, it seems that tapering will not happen until the end of this year, this greenback weakening across the board. The great question that arises this week, is if after the NFP data release on Friday, we will witness the closure on US government.
Technical Analysis and Strategic Bias on USD/CHF
Karen Jones, Head Technical Analyst at Commerzbank suggests that “Currently our favoured view is for losses to hold over 0.9020. However we would need to see a rapid bounce back above the 0.9146 August low just to alleviate immediate downside pressure and signal a return to .9261 – the 23.6% retracement of the move down from July. Failure to hold over 0.9077, the current September low, will see USD/CHF sell off to the 0.9023 2013 low and should this also give way, then the 0.8931 2012 low.