18 Sep 2013
USD/CHF pares earlier gains as “risk-aversion” prevails
FXstreet.com (Athens)- The USD/CHF is losing its earlier uptrend momentum and slowly slides again.
USD/CHF is slowly sliding post US building data and ahead of FOMC minutes.
The pair has been trading indeed, in a very tight range since the early Asian trading opening session hovering around 0.9260 area. While it was boosted on better than expected ZEW in Switzerland, it soon reversed back to its earlier position. Even though the US housing data were released lower than expected, the pair didn’t move much, but it seems that is slowly going downwards, as the “greenback” loses ground across the board. The Swiss ZEW data missed expectations but released at much better levels than the previous ones, even if ahead of the “big FOMC day” that does not count on much.
Technical Outlook on USD/CHF
Traders should in any case bear in mind that the correlation between the USD/CHF and the EUR/USD, is heavily negatively correlated, thus, while EUR/USD is trading to the upper level today is very logical that the USD/CHF is under pressure. Gareth Berry, Analyst on behalf of UBS mentions that “Real money buying was evenly matched by leveraged selling, leaving net flows delicately balanced.”
USD/CHF is slowly sliding post US building data and ahead of FOMC minutes.
The pair has been trading indeed, in a very tight range since the early Asian trading opening session hovering around 0.9260 area. While it was boosted on better than expected ZEW in Switzerland, it soon reversed back to its earlier position. Even though the US housing data were released lower than expected, the pair didn’t move much, but it seems that is slowly going downwards, as the “greenback” loses ground across the board. The Swiss ZEW data missed expectations but released at much better levels than the previous ones, even if ahead of the “big FOMC day” that does not count on much.
Technical Outlook on USD/CHF
Traders should in any case bear in mind that the correlation between the USD/CHF and the EUR/USD, is heavily negatively correlated, thus, while EUR/USD is trading to the upper level today is very logical that the USD/CHF is under pressure. Gareth Berry, Analyst on behalf of UBS mentions that “Real money buying was evenly matched by leveraged selling, leaving net flows delicately balanced.”