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4 Jun 2013
EUR/CHF muted at 1.2400
FXstreet.com (London) - Surprisingly, the EUR/CHF has remained onto the 1.2400 handle since the release of EMU Producer Price Index (YoY) that arrived in at -0.2% in April, vs. expectations of +0.3%.
Analysts teams at ANZ said that the “…bias since late-2012 has been for an eventual break through 1.2650 (38.2% of the fall from 2007’s 1.6830 high) for a range flip towards the next retracement and so a target zone of 1.3260-1.3450. However, failure to breach 1.2650 and sliding back into the 1.2350-1.2450 area is unwinding upside potential. A sharp move above 1.2550 is needed to avoid a return to dull range trading”.
Support is seen at 1.2380 ahead of 1.2350 with the ECB on Thursday as the main event in focus for the pair this week. USD/CHF continues to be offered weighing on the cross. In the opinion of Commerzbank, the USD/CHF’s correction lower has extended lower towards the 200 day ma at 0.9358, the intraday charts have turned more negative and at this stage they are unable to rule out further weakness to the 0.9324 2013 uptrend, which they look to ideally hold.
Analysts teams at ANZ said that the “…bias since late-2012 has been for an eventual break through 1.2650 (38.2% of the fall from 2007’s 1.6830 high) for a range flip towards the next retracement and so a target zone of 1.3260-1.3450. However, failure to breach 1.2650 and sliding back into the 1.2350-1.2450 area is unwinding upside potential. A sharp move above 1.2550 is needed to avoid a return to dull range trading”.
Support is seen at 1.2380 ahead of 1.2350 with the ECB on Thursday as the main event in focus for the pair this week. USD/CHF continues to be offered weighing on the cross. In the opinion of Commerzbank, the USD/CHF’s correction lower has extended lower towards the 200 day ma at 0.9358, the intraday charts have turned more negative and at this stage they are unable to rule out further weakness to the 0.9324 2013 uptrend, which they look to ideally hold.