Forex: USD/CHF hangs onto 0.9300 level following EMU data

The USD/CHF has moved off its European highs of 0.9335, as the pair has crossed the threshold into negative territory Wednesday on the heels of some uneven data out of the EMU. Ultimately, the cross has not lost its grasp on the key 0.9300 barrier, however the pair has settled at 0.9308/13 in these moments, off -0.10% from its opening.

According to Slobodan Drvenica, an analyst at Windsor Brokers Ltd., “Hourly bulls are losing traction and see risk of a slide below the 0.9300 region that may risk violation of range floor at 0.9280 and signal stronger pullback. The notion is supported by 4h studies that are losing bullish momentum. However, overall bulls from 0.9020 base will remain in play for eventual test of key 0.9381/87 barriers.”

In the EMU, the M3 Money Supply (3m/January) grew +3.5%, compared with a figure of +3.8% previously. In addition, the M3 Money Supply (YoY) climbed +3.5% in the month of January, exceeding expectations of only +3.2%. Finally, Private Loans (YoY) contracted -0.9%, against a consensus of only -0.06%.

Drvenica cites to additional supports at the 0.9300 barrier, onto 0.9280, and finally 0.9256. On the ascension, a break above the 0.9337 resistance will initiate additional means of correction at 0.9348 and 0.9381.