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7 Oct 2013
EUR/CHF continues the downwards drift
FXstreet.com (Athens) – The EUR/CHF is trading again lower the past couple of hours after having moved sidelines during the mid European trading session, amidst the continuing US political “jitters.”
EUR/CHF slides further downwards as the “Swissie” outperforms across the board
The EUR/CHF is moving lower today after a small sideways movement in the middle European trading session, due to the fact that the “Swissie” is the second best performer across the board after the Japanese currency. Elaborating on, we are ahead a very light calendar data day but also amidst a continued uncertainty over the United States’ fiscal future. In fact markets behave to a major extent as they did back to the August as of 2011; thus focusing again on the “risk-on” against “risk-off’’ cross-assets correlations. While we agree with Moody's CEO McDaniel opinion expressed through the news wires, saying that "sees very low" chance of US default, we do consider that it may take time to reach to an agreement. Thus, if the agreement is reached at the 12th hour it is plausible that till then, the tensions will not ease.
Technical Outlook on EUR/GBP
Karen Jones, Head Technical Analyst at Commerzbank suggests that the “EUR/CHF EUR/CHF tested and rebounded off the 1.2217 June low. The rebound Rallies are now expected to remain capped by the 1.2310 200 day ma. Note only above 1.2315 will alleviate immediate downside pressure. This leaves the market vulnerable on the downside to further losses and it targets
1.2135/32, the April lows.”
EUR/CHF slides further downwards as the “Swissie” outperforms across the board
The EUR/CHF is moving lower today after a small sideways movement in the middle European trading session, due to the fact that the “Swissie” is the second best performer across the board after the Japanese currency. Elaborating on, we are ahead a very light calendar data day but also amidst a continued uncertainty over the United States’ fiscal future. In fact markets behave to a major extent as they did back to the August as of 2011; thus focusing again on the “risk-on” against “risk-off’’ cross-assets correlations. While we agree with Moody's CEO McDaniel opinion expressed through the news wires, saying that "sees very low" chance of US default, we do consider that it may take time to reach to an agreement. Thus, if the agreement is reached at the 12th hour it is plausible that till then, the tensions will not ease.
Technical Outlook on EUR/GBP
Karen Jones, Head Technical Analyst at Commerzbank suggests that the “EUR/CHF EUR/CHF tested and rebounded off the 1.2217 June low. The rebound Rallies are now expected to remain capped by the 1.2310 200 day ma. Note only above 1.2315 will alleviate immediate downside pressure. This leaves the market vulnerable on the downside to further losses and it targets
1.2135/32, the April lows.”