EURUSD Goes Down As USDCHF Goes Up!

EURO -dollar - 69875

USDCHF: Bullish With Eyes On The 0.9800 Levels!

The USDCHF maintained a bullish momentum yesterday, bottomed at the 0.9587 levels, and topped at the 0.9717 levels. This development leaves the pair targeting the 0.9807 levels, a halt is likely and a reversal may occur (if seen support comes at the 0.9715 levels) but if this fails to occur, expect the pair to extend gains to the 0.9900 levels, further upside, resistance stands at the 0.9965 levels.

Note: above 0.9717 levels will accelerate the expected bullish move to the 0.9807 levels…

On the downside, a sustained breakout above 0.9717 will turn it from resistance to support, anyway; immediate support stands at the 0.9650 levels ahead of the 0.9587 levels(main), a cut through 0.9587 levels will reverse risk to the 0.9420 levels.

Conclusion: The USDCH faces upside threats above the 0.9587 levels with risk to the 0.9800 levels, below 0.9587 sees a fall risk to the 0.9420 levels.

 

The EURUSD and USDCHF had a near-perfect negative correlation of -1.00. This implies that 100% of the time when the EUR/USD rallied, USD/CHF sold off (so the opposite is true). This relationship even holds true over longer periods as the correlation figures remain relatively stable.

 EURUSD: Still Faces Corrective Pullback Risks!

With EURUSD trading below 1.2025 levels, the pair remains vulnerable, further downside is likely in the day ahead, support lies at the 1.1822 levels ahead of the 1.1773 levels (main), a halt is likely and it may turn higher from here, however; below 1.1773 sees a fall risk to the 1.1730 levels, further down, support stands at the 1.1670 levels.

On the upside, immediate resistance comes at the 1.1915 levels, a clear break above that level will turn the focus back on the 1.2025 levels, further upside should weaken recent fall and pave the way to the 1.2058/1.2091 levels.

Conclusion: The EURUSD continues to face corrective pullback threats below the 1.2025 levels…

 

DONT MISS:

  • The U.S will release data on Philadelphia Fed Manufacturing Index and initial jobless claims.
  • The ECB President Mario Draghi will Speak at the 2nd ESRB annual conference in Frankfurt, Germany at 13:30 GMT.

Take these evens as  selling opprtunities for EURUSD…

Further Reading

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