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21 Feb 2013
Forex: USD/CHF retesting the 0.9300 resistance
The USD/CHF has been on the winning end of the risk-off movement that has enveloped the market Thursday, as market participants are still trying to digest yesterdays FOMC minutes. A surge that took the exchange to 0.9322 (session high) was ultimately sequestered in recent moments, easing the pair back towards the 0.9306/08 level at the time of writing.
According to Slobodan Drvenica, an analyst at Windsor Brokers Ltd., after breaking above and currently testing resistance at 0.9300 (key upside barrier), the USD/CHF is in the drivers seat and is slated to face additional means of calculated resistances at 0.9323 and 0.9345. On the pullback, a move below 0.9271 will foster supportive means at the 0.9254 handle, down to 0.9227.
“The near-term bulls regained ground after yesterday’s brief break below 0.9200 higher base, which found ground above 0.9150 breakpoint. A fresh extension through 0.9256 (previous range top) has so far tested our next target at 0.9300 (Fib 76.4% of 0.9387/0.9020 and daily Ichimoku cloud top), where overbought hourly studies have attempted to cap the rally.” notes Drvenica.
Earlier today in Germany, Markit Manufacturing PMI came in at 50.1 in the month of February, missing expectations of 50.5. In addition, Markit Services PMI (February) yielded a result of just 54.1, slightly off estimates of 55.5. In the EMU, Markit Manufacturing PMI reported 47.8 in February, against projections calling for 48.5. Finally, the Markit PMI Composite gave just 47.3, vs. an estimated figure of 49.0.
According to Slobodan Drvenica, an analyst at Windsor Brokers Ltd., after breaking above and currently testing resistance at 0.9300 (key upside barrier), the USD/CHF is in the drivers seat and is slated to face additional means of calculated resistances at 0.9323 and 0.9345. On the pullback, a move below 0.9271 will foster supportive means at the 0.9254 handle, down to 0.9227.
“The near-term bulls regained ground after yesterday’s brief break below 0.9200 higher base, which found ground above 0.9150 breakpoint. A fresh extension through 0.9256 (previous range top) has so far tested our next target at 0.9300 (Fib 76.4% of 0.9387/0.9020 and daily Ichimoku cloud top), where overbought hourly studies have attempted to cap the rally.” notes Drvenica.
Earlier today in Germany, Markit Manufacturing PMI came in at 50.1 in the month of February, missing expectations of 50.5. In addition, Markit Services PMI (February) yielded a result of just 54.1, slightly off estimates of 55.5. In the EMU, Markit Manufacturing PMI reported 47.8 in February, against projections calling for 48.5. Finally, the Markit PMI Composite gave just 47.3, vs. an estimated figure of 49.0.