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18 Mar 2014
USD/CHF is in consolidation thinking of going down
FXStreet (Moscow) - USD/CHF consolidates within narrow 10-pips range starting the day at 0.8731 and trading around 0.8733 at the moment.
The “euro-syndrome”
As we see, the pair is not ready to show the full-blown rally to new highs, not only because of the unstable geopolitical stance, but also because somebody likes the Swissy as much as the euro. It seems like diversification flows to European currencies are growing, and it may leave the pair under pressure medium-term. Besides, the American data weakness adds some oil to the fire. Today the market may focus its attention on the US releases. The CPI numbers may dip from 1.6% to 1.2% due to base effects in energy prices. The subdued inflation numbers may continue to limit the FED ability to speed up the tapering, thus limiting the USD ability to go higher. As a result, we don’t rule out the possibility of another move down with initial target at 0.8711 support level.
What are today’s key USD/CHF levels?
Today's central pivot point can be found at 0.8735 with support below at 0.8711, 0.8691 and 0.8667, with resistance above at 0.8755, 0.8779, and 0.8799. Hourly Moving Averages are largely bearish, with the 200SMA at 0.8774 and the daily 20EMA bearish at 0.8822. Hourly RSI is neutral at 46.
The “euro-syndrome”
As we see, the pair is not ready to show the full-blown rally to new highs, not only because of the unstable geopolitical stance, but also because somebody likes the Swissy as much as the euro. It seems like diversification flows to European currencies are growing, and it may leave the pair under pressure medium-term. Besides, the American data weakness adds some oil to the fire. Today the market may focus its attention on the US releases. The CPI numbers may dip from 1.6% to 1.2% due to base effects in energy prices. The subdued inflation numbers may continue to limit the FED ability to speed up the tapering, thus limiting the USD ability to go higher. As a result, we don’t rule out the possibility of another move down with initial target at 0.8711 support level.
What are today’s key USD/CHF levels?
Today's central pivot point can be found at 0.8735 with support below at 0.8711, 0.8691 and 0.8667, with resistance above at 0.8755, 0.8779, and 0.8799. Hourly Moving Averages are largely bearish, with the 200SMA at 0.8774 and the daily 20EMA bearish at 0.8822. Hourly RSI is neutral at 46.