The Fusion Media Network: |
 |
Welcome,
Guest!
- BROKERS
Main Directory Promotions Interviews Compare Demo Accounts Live Accounts Special Offer - SOFTWARE
Main Charts Signals Trading Platforms - FUND MANAGERS
Main Interviews - EDUCATION
Main - MEMBERSHIP
Technical
Central Banks
Forex Brokers
Trading Tools
Swiss Franc Under Pressure as Investor Confidence Drops
By: James Hyerczyk - 20-07-2008
0votesWeekly Recap
The bullish U.S. stock market buoyed by better-than-expected news from Wells Fargo, J.P. Morgan and Citigroup, helped rally the USD/CHF late in the week as traders sought a better return for their money in higher yielding assets.
Fundamentals
Internally, the Swiss Franc is feeling pressure because of an industry report showing investor confidence in the economy reached its lowest level ever.
Traders are looking at this news as a reason to prevent the Swiss central bank from raising rates in the near term.
Technicals
Based on the medium-term range of .9635 to 1.0625, this pair found support in the retracement zone at 1.0130 to 1.0013, making the weekly low at 1.0010.
Buyers came in at this price and with help from the bullish stock market bought aggressively and reversed the weekly close to up.
The current chart pattern needs a follow through rally through 1.0257 to confirm the 1.0010 reversal bottom.
After the confirmation, look for the rally to continue to at least 1.0318 to 1.0390.
Next Analysis: Weak Crude Oil Could Drive Down Canadian ExportsContent Provided by:
James Hyerczyk
James A. Hyerczyk is a registered Commodity Trading Advisor with the National Futures Association.
Mr. Hyerczyk has been actively involved in the futures markets since 1982. He has worked in various capacities within the futures industry from technical analyst to commodity trading advisor.
DISCLAIMER:
Forex (off-exchange foreign currency futures and options or FX) trading involves substantial risk of loss and is not suitable for every investor. The value of currencies may fluctuate and investors may lose all or more than their original investments. Risks also include, but are not limited to, the potential for changing political and/or economic conditions that may substantially affect the price and/or liquidity of a currency. The impact of seasonal and geopolitical events is already factored into market prices. Prices in the underlying cash or physical markets do not necessarily move in tandem with futures and options prices. The leveraged nature of FX trading means that any market movement will have an equally proportional effect on your deposited funds and such may work against you as well as for you. In no event should the content of this correspondence be construed as an express or implied promise or guarantee from James A. Hyerczyk and J.A.H. Research and Trading or its subsidiaries and/or affiliates that you will profit or that losses can or will be limited in any manner whatsoever. Loss-limiting strategies such as stop loss orders may not be effective because market conditions may make it impossible to execute such orders. Likewise, strategies using combinations of positions such as "spread" or "straddle" trades may be just as risky as simple long and short positions. Past results are no indication of future performance. Information contained in this correspondence is intended for informational purposes only and was obtained from sources believed to be reliable. Information is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted.
Become a member and get 6 free Forex courses by OTA! - Charts
- Survey
How much are you willing to deposit with a fund manager?
Browse The Entire ForexPros.com Site:
News
Quotes
Forex Analysis
Forex Brokers
Forex Software
Live Events
Charts
Fund Managers
Education
Forex Forums
Languages
