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9 Sep 2013
USD/CHF heads downwards as hedge funds bid in risk
FXstreet.com (Athens)- The USD/CHF is under heavy pressure due to the fact that risk-appetite is back “on” and EUR/USD..trades significantly higher.
The USD/CHF under pressure amidst Fed taper bets and EUR/USD uptrend behavior
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). However, we still do not know on what is likely to happen thereafter. Investors should be aware if the Fed’s president in San Franscisco Williams adopts a dovish or hawkish stance in his speech, as his comments amount to the last bit of “fed-speak” before Fed officials proceed with the final decision.
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, since EUR/USD moved abruptly above 1.3200, the USD/CHF came under heavily pressure almost instantly. Thus, investors can take advantage of the two pair correlation, independently on what cross are interested in. At the time of writing, the pair is trading at 0.9339, down 0.40%. The FXstreet.com Trend Index shows the pair to be slightly bearish and extremely oversold 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.
The USD/CHF under pressure amidst Fed taper bets and EUR/USD uptrend behavior
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). However, we still do not know on what is likely to happen thereafter. Investors should be aware if the Fed’s president in San Franscisco Williams adopts a dovish or hawkish stance in his speech, as his comments amount to the last bit of “fed-speak” before Fed officials proceed with the final decision.
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, since EUR/USD moved abruptly above 1.3200, the USD/CHF came under heavily pressure almost instantly. Thus, investors can take advantage of the two pair correlation, independently on what cross are interested in. At the time of writing, the pair is trading at 0.9339, down 0.40%. The FXstreet.com Trend Index shows the pair to be slightly bearish and extremely oversold 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.