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22 Jan 2016
USD/CHF poised for a second weekly gain
FXStreet (Mumbai) - The drop in the safe haven demand for the CHF has put the USD/CHF pair on track to second weekly gain.
Trading at seven-week high
At 1.0145, the pair is trading at a seven-week high. The demand for the safe haven CHF fell after the oil prices rose and the chatter about more ECB and BOJ easing stabilized the risk sentiment in the markets.
Furthermore, ECB’s hint at more easing in March has also brought CHF under pressure since more easing from the ECB also means a high possibility that SNB would retaliate. As of now, the traders are ignoring the US data releases and remain focused on the stock markets.
USD/CHF Technical Levels
The immediate resistance is seen at 1.0220 (Nov 18 high), above which the pair could test 1.0261 (Nov 25 high). On the other hand, a break below 1.0114 (hourly 10-MA) would expose the hourly 50-MA at 1.0072.
Trading at seven-week high
At 1.0145, the pair is trading at a seven-week high. The demand for the safe haven CHF fell after the oil prices rose and the chatter about more ECB and BOJ easing stabilized the risk sentiment in the markets.
Furthermore, ECB’s hint at more easing in March has also brought CHF under pressure since more easing from the ECB also means a high possibility that SNB would retaliate. As of now, the traders are ignoring the US data releases and remain focused on the stock markets.
USD/CHF Technical Levels
The immediate resistance is seen at 1.0220 (Nov 18 high), above which the pair could test 1.0261 (Nov 25 high). On the other hand, a break below 1.0114 (hourly 10-MA) would expose the hourly 50-MA at 1.0072.