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9 Sep 2013
USD/CHF confined at a very tight range
FXstreet.com (Athens)- The USD/CHF is trading at a very narrow range of approximately 20 pips, after solid Switzerland data released and ahead of Fed’s Williams speech.
Will Fed’s John Williams pave the way for USD/CHF above the 0.9500?
A bit earlier, Switzerland retail sales released to have risen at a 0.8% pace on a yearly basis in July versus 2.3% in August. While there was a slight increase, still it was softer enough than the prior one. However, investors eyes focusing today on the scheduled commentary from San Francisco Fed President John Williams. As it is taken for granted that the Fed will proceed in September with a gradual cutback of asset purchases (as otherwise might be problematic from a credibility perspective given Fed officials’ considerable efforts “communicate” tapering the recent months), investors should try to figure out news-flow arguing against a sustained stimulus reduction cycle through the year-end.
Technical Outlook on USD/CHF
Traders should never forget that there is a highly strong and negative correlation between the USD/CHF and the EUR/USD. Thus, a move above 0.9500 in the USD/CHF would probably mean that the EUR/USD would be under high pressure and vice-versa. At the time of writing, the pair is trading at 0.9367, down 0.09%. The FXstreet.com Trend Index shows the pair to be slightly bearish in the 15 minutes framework. Daily pivot point support can be found at S3: 0.9307 S2: 0.9284 S1:0.9260 and resistance at R1:0.9417 R2:0.9441 R3:0.9464, respectively.
Will Fed’s John Williams pave the way for USD/CHF above the 0.9500?
A bit earlier, Switzerland retail sales released to have risen at a 0.8% pace on a yearly basis in July versus 2.3% in August. While there was a slight increase, still it was softer enough than the prior one. However, investors eyes focusing today on the scheduled commentary from San Francisco Fed President John Williams. As it is taken for granted that the Fed will proceed in September with a gradual cutback of asset purchases (as otherwise might be problematic from a credibility perspective given Fed officials’ considerable efforts “communicate” tapering the recent months), investors should try to figure out news-flow arguing against a sustained stimulus reduction cycle through the year-end.
Technical Outlook on USD/CHF
Traders should never forget that there is a highly strong and negative correlation between the USD/CHF and the EUR/USD. Thus, a move above 0.9500 in the USD/CHF would probably mean that the EUR/USD would be under high pressure and vice-versa. At the time of writing, the pair is trading at 0.9367, down 0.09%. The FXstreet.com Trend Index shows the pair to be slightly bearish in the 15 minutes framework. Daily pivot point support can be found at S3: 0.9307 S2: 0.9284 S1:0.9260 and resistance at R1:0.9417 R2:0.9441 R3:0.9464, respectively.