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19 May 2014
USD/CHF: pivotal support of 0.8900 is within reach
FXStreet (Moscow) - USD/CHF is under pressure as the pair retreated from Asian high of 0.8926 and tested lows of 0.8904.
Swissy has its own way
Although the swissy is a traditional safe heaven, this time the moves of the pair are not correlated with USD/JPY. Although the market is showing great interest to US government bonds what is usually an indicator for risk aversion, the swissy is sold, and is coming closer to 3-month lows around 0.8960 area. The reason of such behavior is the euro weakness, and unless we get some positive EMU data, we may continue to watch the pair rise. If so, 0.8950 resistance may become the initial target to the upside.
What price levels and patterns have to be considered?
Spot is presently trading at 0.8912, and next resistance can be seen at 0.8913 (Hourly 20 EMA), 0.8915 (Weekly Classic PP), 0.8918 (Daily Classic PP), 0.8925 (Daily Open) and 0.8926 (Daily High).
Next support to the downside can be found at 0.8907 (Daily Classic S1), 0.8904 (Daily Low), 0.8903 (Hourly 100 SMA), 0.8898 (Yesterday's Low) and 0.8895 (Daily 100 SMA).
Swissy has its own way
Although the swissy is a traditional safe heaven, this time the moves of the pair are not correlated with USD/JPY. Although the market is showing great interest to US government bonds what is usually an indicator for risk aversion, the swissy is sold, and is coming closer to 3-month lows around 0.8960 area. The reason of such behavior is the euro weakness, and unless we get some positive EMU data, we may continue to watch the pair rise. If so, 0.8950 resistance may become the initial target to the upside.
What price levels and patterns have to be considered?
Spot is presently trading at 0.8912, and next resistance can be seen at 0.8913 (Hourly 20 EMA), 0.8915 (Weekly Classic PP), 0.8918 (Daily Classic PP), 0.8925 (Daily Open) and 0.8926 (Daily High).
Next support to the downside can be found at 0.8907 (Daily Classic S1), 0.8904 (Daily Low), 0.8903 (Hourly 100 SMA), 0.8898 (Yesterday's Low) and 0.8895 (Daily 100 SMA).