16 Jan 2015
USD/CHF aims for 0.8700?
FXStreet (Edinburgh) - It seems the dust is not yet well settled after the unexpected move by the SNB on Thursday, with USD/CHF sidelining in levels just shy of 0.8700 the figure.
USD/CHF trying to find a fair value
Markets in the meantime continue to digest the sudden shock and it seems it will take several more days for traders to adjust to the new game, while at the same time continue to look for a fair or proxy value for the pair, as well as for EUR/CHF. In the data front, retail sales in Switzerland contracted 1.2% on a year to November, although markets largely ignored the release.
According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, “The down move was extreme and although the market came back a long way, rallies will need to clear 0.9128 (61.8% retracement of the sell off) in order to alleviate immediate downside pressure”.
USD/CHF levels to consider
The pair is now losing 0.25% at 0.8668 with the next support at 0.8385 (hourly low Jan.16) followed by the psychological marks at 0.8300 and 0.8200. On the upside, a breakout of 0.9134 (recovery high Jan.15) would allow for a test of 0.9175 (monthly low Sep.2014) and then 0.9361 (monthly low Oct.2014).
USD/CHF trying to find a fair value
Markets in the meantime continue to digest the sudden shock and it seems it will take several more days for traders to adjust to the new game, while at the same time continue to look for a fair or proxy value for the pair, as well as for EUR/CHF. In the data front, retail sales in Switzerland contracted 1.2% on a year to November, although markets largely ignored the release.
According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, “The down move was extreme and although the market came back a long way, rallies will need to clear 0.9128 (61.8% retracement of the sell off) in order to alleviate immediate downside pressure”.
USD/CHF levels to consider
The pair is now losing 0.25% at 0.8668 with the next support at 0.8385 (hourly low Jan.16) followed by the psychological marks at 0.8300 and 0.8200. On the upside, a breakout of 0.9134 (recovery high Jan.15) would allow for a test of 0.9175 (monthly low Sep.2014) and then 0.9361 (monthly low Oct.2014).