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Forex: USD/CHF closer to highs after German factory orders

Strong bids in the EUR/CHF market sent the USD/CHF higher by more than 50 pips, back above the 0.9100 mark and reaching as high as 0.9144. The following corrective movement is being held above 0.9120. The USD/CHF is approaching its highs again, currently at 0.9130 (+0.50%).

German factory orders were just released, disappointing investors with a wider annualized fall than expected, from -0.9% (revised from -1.0%) to -1.8%, instead of the -1.2% consensus. On the month, orders have risen by +0.8%, not as much as the +0.9% expected.

“Larger picture maintains bearish tone and keeps the downside favored, as long as 0.9300, daily Ichimoku cloud top stays intact”, wrote Windsor Brokers analyst Slobodan Drvenica, requiring the clearance of 0.9150/60 (55 day EMA / Fib 38.2% of 0.9387/0.9020) to confirm and open 0.9200 (round figure / 50% retracement).

Germany: Factory Orders drop more than expected in December

On an annual basis German Factory Orders n.s.a. fell for the 12th running month by 1.8% in December, following -1% the previous month, according to data released today by the Deutsche Bundesbank. Analysts expected less decline of 1.2%.
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Forex Flash: Bearish gap closes as Bunds test resistance – RBS

According to Technical Markets Strategist Dmytro Bondar at RBS, “Bund prices tested the 142.95 resistance, being the 50% retracement from the July 2012 impulse wave on a continuation chart, which closed the 142.50 bearish gap from 28 January 2013, suggesting more recovery towards the 143.70 mark is likely.”
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