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21 May 2014
USD/CHF: pivotal support of 0.8900 is under attack
FXStreet (Moscow) - USD/CHF is under pressure as USD is offered against most majors; the pair opened at 0.8917 and dipped to 0.8896
The correlation and motivation
Although there is nothing of note from fundamental point of view except for FED’s officials commenting on economic issues, the pair is still climbing higher, and may soon get back above 0.90. The current strength of the pair is quite surprising given the unpopularity of the USD. The thing is that CHF has recently been closely correlated with the euro, and the last Draghi comments served as a trigger to sell the Swissy. The possible environment in which the pair may get back to the May lows is the market belief that the ECB won’t do much on easing path. For the moment the downside is limited by the 0.8900/90 support level, while the upside – by the 0.8930 resistance.
What are today’s key USD/CHF levels?
Today's central pivot point can be found at 0.8924 with support below at 0.8908, 0.8895 and 0.8879, with resistance above at 0.8937, 0.8953, and 0.8976. Hourly Moving Averages are mixed, with the 200SMA at 0.8860 and the daily 20EMA bullish at 0.8852. Hourly RSI is bearish at 48.
The correlation and motivation
Although there is nothing of note from fundamental point of view except for FED’s officials commenting on economic issues, the pair is still climbing higher, and may soon get back above 0.90. The current strength of the pair is quite surprising given the unpopularity of the USD. The thing is that CHF has recently been closely correlated with the euro, and the last Draghi comments served as a trigger to sell the Swissy. The possible environment in which the pair may get back to the May lows is the market belief that the ECB won’t do much on easing path. For the moment the downside is limited by the 0.8900/90 support level, while the upside – by the 0.8930 resistance.
What are today’s key USD/CHF levels?
Today's central pivot point can be found at 0.8924 with support below at 0.8908, 0.8895 and 0.8879, with resistance above at 0.8937, 0.8953, and 0.8976. Hourly Moving Averages are mixed, with the 200SMA at 0.8860 and the daily 20EMA bullish at 0.8852. Hourly RSI is bearish at 48.