USD/CHF: Franc Losing Ground
LiteForex Europe | Jan 27, 2015 05:25AM ET
The dollar grew against a basket of major currencies on Monday after the Syriza party won the Greek election. The party does not support austerity measures and the radical party's ascent to power may cause a decline in demand for the euro, and an increased interest in the dollar. After the Swiss national bank's unexpected decision to abandon the euro peg, the franc has started to gradually lose ground and has hit 2-week lows, which is apparently favourable to the Swiss economy.
The next movements will be mostly dependent on the US and European economic indexes. In the short term, the USD/CHF will grow by 90 points up to a level of 0.9125. Even though the RSI indicator signals to sell, do not hurry to open short positions given the current economic situation.
A local maximum of 0.9125 serves as the nearest resistance level. The 50-period moving average at 0.8809 serves as support.
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