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8 Oct 2013
USD/CHF forms rectangular pattern below 0.9040
FXstreet.com (Chicago) - USD/CHF traded sideways most of the day printing highs at 0.9067 and lows at 0.9023 to pocket 0.10% gains on the greenback’s apparent reaction to continuous losses across the board these past days.
Bloody week so far
Wall Street reprinted losses for a bloody week with the Dow down 1.07%, the Nasdaq down 2% and the S&P500 down 1.23%. President Obama made a public announcement to repeat what he said at the beginning of the shutdown: no negotiations and compromise with republicans on spending and debt deficit. In Switzerland, the Chairman of the SNB Governing Board, Thomas Jordan, insisted on the role of the bank “SNB monetary policy is focused on ensuring price stability, while taking due account of economic developments. To fulfill this mandate, the SNB must secure appropriate monetary conditions. The current account surplus does not play a role in monetary policy. In an open economy like Switzerland, however, sizeable exchange rate fluctuations have a strong impact on production and prices. In the current environment, and with interest rates close to zero, the minimum exchange rate remains essential.”
USD/CHF Technical Levels
Technically speaking, the pair is offered at 0.9037 and oscillates between supports aligned at 0.8994 (October 1st lows), 0.8967 (October 3rd lows) ahead of 0.8933 (February 27th 2012 lows) and the resistances set at 0.9080 (October 4th highs), 0.9137 (September 24th highs) followed by 0.9171 (August 27th lows). On potential ascending triangle formation, the pair trades right on the EMA20 and is reported as slightly bearish on one-hour timeframe analysis by the FXstreet.com trend index.
Bloody week so far
Wall Street reprinted losses for a bloody week with the Dow down 1.07%, the Nasdaq down 2% and the S&P500 down 1.23%. President Obama made a public announcement to repeat what he said at the beginning of the shutdown: no negotiations and compromise with republicans on spending and debt deficit. In Switzerland, the Chairman of the SNB Governing Board, Thomas Jordan, insisted on the role of the bank “SNB monetary policy is focused on ensuring price stability, while taking due account of economic developments. To fulfill this mandate, the SNB must secure appropriate monetary conditions. The current account surplus does not play a role in monetary policy. In an open economy like Switzerland, however, sizeable exchange rate fluctuations have a strong impact on production and prices. In the current environment, and with interest rates close to zero, the minimum exchange rate remains essential.”
USD/CHF Technical Levels
Technically speaking, the pair is offered at 0.9037 and oscillates between supports aligned at 0.8994 (October 1st lows), 0.8967 (October 3rd lows) ahead of 0.8933 (February 27th 2012 lows) and the resistances set at 0.9080 (October 4th highs), 0.9137 (September 24th highs) followed by 0.9171 (August 27th lows). On potential ascending triangle formation, the pair trades right on the EMA20 and is reported as slightly bearish on one-hour timeframe analysis by the FXstreet.com trend index.