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2 Oct 2013
USD/CHF smashes near 0.9000 after dismal ADP data
FXstreet.com (Athens) – The USD/CHF is struggling to remain above 0.9000 key level area, as the dismal ADP data dragging the pair downwards.
USD/CHF “threatens” the 0.9000 area; dismal ADP favors mostly for “later” tapering
Taken for granted that the US default on its own mostly leads to a further greenback depreciation, the dismal ADP data also added further downside pressure on the American dollar. Elaborating on, just as the “US default on its own debt” might encourage traders to consider that Fed can now easily delay further tapering, the same does with discouraging ADP employment data. Fed apart from “US default on its own debt”, is now getting another good enough excuse to keep up with QE3, thus as long as tapering is “later” than “sooner”, it is very probable that the greenback might move the down trend.”
Technical Outlook and Strategic Bias on the USD/CHF
Karen Jones, Head Technical Analyst at Commerzbank suggests that the “USD/CHF remains under pressure, last week it failed to overcome even the first resistance offered by the June low at .9130.Support at .9020 is exposed and we have now registered a weekly close below the 2012-2013 uptrend. Below .9020 will target the .8931/12 2012 low and base of the down channel.”
USD/CHF “threatens” the 0.9000 area; dismal ADP favors mostly for “later” tapering
Taken for granted that the US default on its own mostly leads to a further greenback depreciation, the dismal ADP data also added further downside pressure on the American dollar. Elaborating on, just as the “US default on its own debt” might encourage traders to consider that Fed can now easily delay further tapering, the same does with discouraging ADP employment data. Fed apart from “US default on its own debt”, is now getting another good enough excuse to keep up with QE3, thus as long as tapering is “later” than “sooner”, it is very probable that the greenback might move the down trend.”
Technical Outlook and Strategic Bias on the USD/CHF
Karen Jones, Head Technical Analyst at Commerzbank suggests that the “USD/CHF remains under pressure, last week it failed to overcome even the first resistance offered by the June low at .9130.Support at .9020 is exposed and we have now registered a weekly close below the 2012-2013 uptrend. Below .9020 will target the .8931/12 2012 low and base of the down channel.”