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Tuesday, December 1, 2009

USD/CHF finds support at 0.9970

The Swiss Franc is consolidating important gains against the Dollar. USD/CHF fell below parity to 0.9966 reaching the lowest price of the day. Greenback found support at 0.9970 and currently trades at 0.9991/96, 0.60% below today’s opening price. Greenback failed to confirm last week gains and is again under pressure. EUR/CHF failed to break above 1.5100 and pulled back finding support at 1.5070.

Valeria Bednarik, affirms: “Despite all SNB (Swiss National Bank) efforts to avoid Swiss Franc appreciation, pair is right now under parity, and tending lower. The fact is that SNB is watching more closely the relationship with Euro, than with Dollar, and as long as EUR/CHF remains above 1.5050, another intervention seems unlikely.” She concludes: “bigger time frames are strongly bearish, pointing for a retest of the yearly low, around the 0.9920 area.”

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