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11 Sep 2013
EUR/CHF slip back below 1.2400
FXstreet.com (Edinburgh) -The Swiss franc is gathering pace against the single currency on Wednesday, dragging the EUR/CHF back below the 1.2400 handle, down from session peaks around 1.2415.
EUR/CHF supported at 1.2300
A quick glance at the daily chart shows that recent pullbacks were well contained around 1.2300 the figure, triggering corrections higher to levels beyond 1.2400 on the back of better risk sentiment – August peaks and yesterday’s – although further strength seems to be needed in order to make more progress. According to Mansoo Mohi-uddin, Director os FX Strategy at UBS, “With inflationary pressure remaining subdued despite the strength of domestic activity, the central bank faces little pressure to change stance. That keeps us bullish on EURCHF. With the SNB capping the currency, Swiss banks starting to return to foreign markets and Swiss investors also willing to buy foreign assets again, we expect the cross will keep pushing higher. Risk-aversion induced by events in Syria or US fiscal wrangling in Congress next month may temporarily cap the pair”.
EUR/CHF relevant levels
At the moment the cross is losing 0.04% at 1.2394 with the next support at 1.2356 (low Sep.10) followed by 1.2336 (low Sep.9) and then 1.2326 (low Sep.6). On the upside, a breakout of 1.2415 (high Sep.11) would clear the way to 1.2435 (high Aug.15) and finally 1.2466 (high Jul.9).
EUR/CHF supported at 1.2300
A quick glance at the daily chart shows that recent pullbacks were well contained around 1.2300 the figure, triggering corrections higher to levels beyond 1.2400 on the back of better risk sentiment – August peaks and yesterday’s – although further strength seems to be needed in order to make more progress. According to Mansoo Mohi-uddin, Director os FX Strategy at UBS, “With inflationary pressure remaining subdued despite the strength of domestic activity, the central bank faces little pressure to change stance. That keeps us bullish on EURCHF. With the SNB capping the currency, Swiss banks starting to return to foreign markets and Swiss investors also willing to buy foreign assets again, we expect the cross will keep pushing higher. Risk-aversion induced by events in Syria or US fiscal wrangling in Congress next month may temporarily cap the pair”.
EUR/CHF relevant levels
At the moment the cross is losing 0.04% at 1.2394 with the next support at 1.2356 (low Sep.10) followed by 1.2336 (low Sep.9) and then 1.2326 (low Sep.6). On the upside, a breakout of 1.2415 (high Sep.11) would clear the way to 1.2435 (high Aug.15) and finally 1.2466 (high Jul.9).