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31 Oct 2013
EUR/CHF bear its holdings despite soft EZ data
FXstreet.com (Athens) – The EUR/CHF is trading downwards today after five straight ‘green’ days, but out-of the-blue manages to trade slightly higher after Euro land data released earlier, showed that inflation in Euro land is muted and employment makes new record highs.
The EUR/CHF has been trading downwards today since the kick off of the Asian trading session but still manages to trade around 1.2330 area, well above the confluence of the 200 – daily SMA (1.2313), 50 – daily EMA (1.2323) and the 20 – daily EMA (1.2326) at the area as of 1.2313-1.2326. On the bear side, it seems that technically the cross the cross should overcome the barrier as of 1.2387 (the downtrend line from July) to move above the 1.2400 handle. What’s more, market participants might have been taken aback that after the very dismal Euro zone data the cross managed not only to hold its bearings but to move a tad higher. On the other hand, market participants should bear in mind that Euro zone data revealed that Euro land is at a very sluggish mode, since inflation rate sank to 4-year low and labor data released worse than expected. Briefly, a further 60,000 people got unemployed in September and the rate in Euro zone remained unchanged at the historical 12.2%.
Technical Aspects on the EUR/CHF
Karen Jones Head Technical Analyst of Commerzbank, mentions that the “EUR/CHF EUR/CHF is probing the 1.2372 resistance line, we suspect this will hold the initial test, while it does so the near term risk remains on the downside. The 1.2278/66 August lows ahead of the 1.2217/15 June and September lows. A close above 1.2372 would imply further strength to 1.2415 September high and then 1.2435 the mid August high.”
The EUR/CHF has been trading downwards today since the kick off of the Asian trading session but still manages to trade around 1.2330 area, well above the confluence of the 200 – daily SMA (1.2313), 50 – daily EMA (1.2323) and the 20 – daily EMA (1.2326) at the area as of 1.2313-1.2326. On the bear side, it seems that technically the cross the cross should overcome the barrier as of 1.2387 (the downtrend line from July) to move above the 1.2400 handle. What’s more, market participants might have been taken aback that after the very dismal Euro zone data the cross managed not only to hold its bearings but to move a tad higher. On the other hand, market participants should bear in mind that Euro zone data revealed that Euro land is at a very sluggish mode, since inflation rate sank to 4-year low and labor data released worse than expected. Briefly, a further 60,000 people got unemployed in September and the rate in Euro zone remained unchanged at the historical 12.2%.
Technical Aspects on the EUR/CHF
Karen Jones Head Technical Analyst of Commerzbank, mentions that the “EUR/CHF EUR/CHF is probing the 1.2372 resistance line, we suspect this will hold the initial test, while it does so the near term risk remains on the downside. The 1.2278/66 August lows ahead of the 1.2217/15 June and September lows. A close above 1.2372 would imply further strength to 1.2415 September high and then 1.2435 the mid August high.”