Thursday, August 4, 2011

Commerzbank: comments on USD/CHF and EUR/CHF

The greenback rebounded from the record minimum versus Swiss franc in the 0.7600 area and is on its way up to 0.7800.

Technical analysts at Commerzbank note that there are signs of reversal after the Swiss National Bank eased yesterday its monetary policy. The RSI on dollar shows that it’s oversold.

The specialists expect the pair USD/CHF to stabilize above the 25-year support line at 0.7554/50 that connects the minimums from 1987.

daily usdchf 12-02

Chart. Daily USD/CHF



As for the pair EUR/CHF, it also is trying to stabilize after it once again tested 1.0795/1.0800, claims the bank. According to Commerzbank, resistance levels for the pair are situated at 1.1216 (38.2% Fibonacci retracement of the most recent decline) and 1.1365 (July 18 minimum). As long as the single currency is trading below these levels it risks falling to 1.0775 and 1.0550. 

daily eurchf 12-05
 
Chart. Daily EUR/CHF

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