Forex Alert: USD/CHF
The US dollar (USD) has continued to climb against the Swiss franc (CHF) expected to extend gains to 0.9530-40 but a loss of momentum would prevent it from moving beyond that range. Instead there is an expected retreat later in the day below 0.9460 and a test for the 0.9430 bottom – Friday’s low. If it weakens below 0.9430 Actionforex predicts a continuation in the downward trend to 0.9400 and a test to last week’s low of 0.9382, which is likely to hold. Their currently suggested strategy is **Sell at 0.9540, Target: 0.9430, Stop: 0.9575.**
Relevant news includes Sunday’s announcement by Fritz Zurbruegg, the Swiss National Bank board member, who indicated that the central bank is prepared to take action to protect the Swiss economy if there is a further slowdown. He did not specify what kind of action that would be.
FXstreet reported the USD/CHF failed to break the psychological 0.9500 mark overnight and has since submerged below. The overnight climb came as a result of reports that cited IMF Chief Lagarde saying there is “substantial progress” but no agreement yet on the Greek aid decision. Klaus Regling from the EMS noted that the bond-buying programme will be ready for a Spanish aid payment in December.
The Research team at Danske Bank recommend going long at 0.9470 for a target of 0.9580 with a stop at 0.9425.
Important news to watch out for are Consumer Price Index reports: Spanish CPI at 08.00 GMT, Swiss Producer and Import Prices at 08.15 GMT, Italian and Portuguese CPI at 09.00 and UK CPI at 09.30.
At 08.25 GMT the USD/CHF is trading at 0.9510.
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