Forex: USD/CHF erases gains following publication of data

The USD/CHF has fallen nearly 10 pips from the 0.9240 region after the publication of EMU and German data during European trading Tuesday. At the time of writing, the cross has surrendered its daily gains, and has settled in the area of 0.9230/32 as it returns to its opening levels.

According to Slobodan Drvenica, an analyst at Windsor Brokers Ltd., “The overall picture remains bullish in the near-term, with a retest of the next barrier at 0.9300 (also 76.4% of 0.9387/0.9020) and daily Ichimoku cloud top being required to trigger stronger recovery towards key barriers and breakpoint at 0.9400 zone.”

In the EMU, Construction Output w.d.a. (YoY) was reported at -4.8% in December, compared with a figure of -4.7% previously. Meanwhile, Construction Output s.a. (MoM) came in at -1.7% in December, relative to -0.4% previously. Finally, the ZEW Survey – Economic Sentiment (February) yielded a result of 42.4, against expectations of 35.5. In Germany, the ZEW Survey – Economic Sentiment showed a figure of 48.2 in February, against estimates of 35.0. In addition, the ZEW Survey – Current Situation (February) gave only 5.2, against a projected value of 9.0.

The USD/CHF is presently recording a loss of -0.02% Tuesday. Drvenica points to supportive means at the 0.9200 handle down to 0.9150 and finally 0.9140. On the ascension, a break above 0.9241 will initiate means of resistance at 0.9256 and 0.9300 (key barrier).