Forex: USD/CHF rallies above 0.9400 level

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FXstreet.com (Barcelona) - The USD/CHF has sea-sawed back and forth Tuesday on the heels of some better than expected Swiss data and German PPI during European trading. The pair has traded between a rather broad 34-pip range (0.9397 daily minimum, 0.9431 daily maximum), before ultimately settling firmly in positive territory in the area of 0.9413/16 at the time of writing.

On the day, the pair has secured an advance of +0.16% above its opening. Market participants will continue to digest the overnight news surrounding the Moody's downgrade of France as well as the upcoming Spanish bond auctions.

According to Slobodan Drvenica, an analyst at Windsor Brokers Ltd., "the near-term USD/CHF structure weakened further, as the price retests important 0.9400 support, on a slide from last Friday's upside rejection at 0.9489."

Technically speaking, "a brief dip and daily close below the 0.9400 handle (200-day MA), could be a signal for fresh weakness, as near-term indicators are in the negative territory and see the downside favored for now. Initial resistance lies at 0.9436, however only lift above 0.9450, would ease immediate bear pressure."
states Drvenica.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Forex and Currencies

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