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20 Sep 2013
EUR/CHF congested ahead of German elections
FXstreet.com (Athens)- The EUR/CHF is trading at a very tight range, ahead of the key weekend event news i.e. German elections.
EUR/CHF is awaiting….the long-awaited German elections on Sunday.
Undoubtedly, the EUR/CHF is waiting for the German result on Sunday’s elections. Earlier Italian industrial orders slumped 2.2% in July after having showed a 4.3% fall in June; domestic orders led declines by far. Yesterday, Switzerland’s central bank affirmed its cap on the franc and vowed to defend it with unlimited currency interventions to protect the economy. The Swiss National Bank (SNBN), led by President Thomas Jordan, kept its cap on the franc at 1.20 per euro. It also left the band for its benchmark interest rate unchanged at zero percent to 0.25 percent, as forecast by all 21 economists in a Bloomberg News survey.
Technical Outlook on EUR/CHF
The pair should manage to break the 1.2435 (15th of August high), if risk-appetite gets back in track. For the time being, traders should have into deep consideration, that the 200-DMA has underpinned the cross year up to date, thus it is regarded as the absolute technical barometer. Karen Jones, Head Technical Analyst at Commerzbank suggests “Last week EUR/CHF saw a strong rebound off its 200 day moving average at 1.2300 and briefly hit the 1.2400 mark – the market is attempting to gain a foot hold above here. Note we have a small downtrend at 1.2405.The 1.2435 August high is thus in the picture, followed by the 1.2466 July high. Intraday dips should find some support at 1.2326/1.2300, around the 200 day ma. Only once the next higher 1.2466 July high has been bettered, will the 1.2545/57 region be eyed.”
EUR/CHF is awaiting….the long-awaited German elections on Sunday.
Undoubtedly, the EUR/CHF is waiting for the German result on Sunday’s elections. Earlier Italian industrial orders slumped 2.2% in July after having showed a 4.3% fall in June; domestic orders led declines by far. Yesterday, Switzerland’s central bank affirmed its cap on the franc and vowed to defend it with unlimited currency interventions to protect the economy. The Swiss National Bank (SNBN), led by President Thomas Jordan, kept its cap on the franc at 1.20 per euro. It also left the band for its benchmark interest rate unchanged at zero percent to 0.25 percent, as forecast by all 21 economists in a Bloomberg News survey.
Technical Outlook on EUR/CHF
The pair should manage to break the 1.2435 (15th of August high), if risk-appetite gets back in track. For the time being, traders should have into deep consideration, that the 200-DMA has underpinned the cross year up to date, thus it is regarded as the absolute technical barometer. Karen Jones, Head Technical Analyst at Commerzbank suggests “Last week EUR/CHF saw a strong rebound off its 200 day moving average at 1.2300 and briefly hit the 1.2400 mark – the market is attempting to gain a foot hold above here. Note we have a small downtrend at 1.2405.The 1.2435 August high is thus in the picture, followed by the 1.2466 July high. Intraday dips should find some support at 1.2326/1.2300, around the 200 day ma. Only once the next higher 1.2466 July high has been bettered, will the 1.2545/57 region be eyed.”