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30 Sep 2013
EUR/CHF catching a bounce on a bears back
FXstreet.com (London) - The general outlook for EUR/CHF seems bearish with the risk factor being with an Italian government falling apart.
Jane Foley Senior Currency Strategist at Rabobank explained that near-term, it is likely that CHF will see further gains. “EUR/CHF last week broke down below the 200 days sma which gives weight to a bullish outlook for the Swissie. However, the SNB have indicated that it has no intention of dropping its commitment to its EUR/CHF 1.20 floor. The gains in the CHF, therefore are likely to run out of steam as this level nears”. From the calendar today, Research teams at TD Securities said, “Eurozone CPI slipped from 1.3% to 1.1% Y/Y in Sept, coming in below market expectations for 1.2%. So nothing here that would push the ECB away from its dovish stance on Wed”
EUR/CHF levels
The 20 DMA is 1.2338, the 50 DMA is 1.2334 and the 200 DMA is 1.2304. RSI (14) reads 25.62. Supports are ascending from 1.2164, 1.2180, 1.2191, 1.2199 and 1.2218. Spot is currently 1.2244 while resistances are 1.2279, 1.2311 and 1.2335.
Jane Foley Senior Currency Strategist at Rabobank explained that near-term, it is likely that CHF will see further gains. “EUR/CHF last week broke down below the 200 days sma which gives weight to a bullish outlook for the Swissie. However, the SNB have indicated that it has no intention of dropping its commitment to its EUR/CHF 1.20 floor. The gains in the CHF, therefore are likely to run out of steam as this level nears”. From the calendar today, Research teams at TD Securities said, “Eurozone CPI slipped from 1.3% to 1.1% Y/Y in Sept, coming in below market expectations for 1.2%. So nothing here that would push the ECB away from its dovish stance on Wed”
EUR/CHF levels
The 20 DMA is 1.2338, the 50 DMA is 1.2334 and the 200 DMA is 1.2304. RSI (14) reads 25.62. Supports are ascending from 1.2164, 1.2180, 1.2191, 1.2199 and 1.2218. Spot is currently 1.2244 while resistances are 1.2279, 1.2311 and 1.2335.