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Forex: USD/CHF eases to 0.9086/88 after PMI data

The USD/CHF has continued its consolidation Tuesday morning, as its daily maximum of 0.9117 looks like a distant memory. The pair’s gains have evaporated across the European session and in the aftermath of PMI data the cross is trading at the 0.9084/85 level in these moments.

According to Slobodan Drvenica, an analyst at Windsor Brokers Ltd., “The near-term USD/CHF price action has moved in a consolidative mode, as a bounce off of 0.9020 lacks momentum for clearance of the initial barrier at 0.9120 (Fib 50% of 0.9225/0.9020 descent). The hourly structure is neutral, while a prevailing negative tone on 4h chart keeps the downside favored.”

Drvenica, points to resistances halting the USD/CHF advance at 0.9120, then 0.9156 (Fib 61.8% and 55-day EMA) and 0.9187. Conversely, a continued movement below the 0.9074 region will initiate supportive measures at 0.9020 and ultimately a key barrier at 0.9000.

In Germany, Markit Services PMI (January) came in at 55.7, against expectations of 55.3. Moreover in the EMU, the Markit Services PMI has yielded a result of 48.6 in January, exceeding estimates of only 48.3. Finally, the Markit PMI Composite (January) has shown 48.6, which represents a higher than projected value of 48.2.

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European money is allowing the USD/JPY to turn back to the upside. After the Asian shift pressure, with a low at 91.98, the market started the current bouncing movement at 92.13. As the "risk off" cloud disappears on Euro air due to stronger PMI data, the USD/JPY rally extends higher, already at 92.70 (+0.35% on the day).
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