EUR/USD and USD/CHF Look To Continue Dollar Weakness Ahead of GDP

Greetings again, Everyone!

Dollar weakness continues quietly but consistently as Risk Aversion gives way to Price Corrections in most Markets.

The Euro and Swissy are fine Examples to illustrate this, with clear IntraDay trends as we move closer and closer towards the U.S. GDP Data Points.

While we stillhave the opportunity for “Counter-Intuitive” Dollar Strength moving forward with Negative GDP… the Probability lies at this point with “Normal” Reactions to the Data,considering current Price Directionality on both Units.

Here are the Hourly Views of both Units, so give the Captures a Click for Commentary.

Post-Time is 11:10 GMT.

I will be back with as the Data plays out and the NYSE Opens to absorb the Activity, and as we move towards the Fed Issues as well!

Tags: appreciation, Data, EUR/USD, federal reserve, GDP, Gross Domestic Product, interest rate, Price, USD/CHF, weakness

Forex Trading: USD/CHF Tests Moving Average Support Again

By Greg Michalowski on April 29, 2009 | More Posts By Greg Michalowski | Forex News By FXDD

The USD/CHF is testing the 200 day simple moving average for the 15th time since January 8th, 2009. On a number of occasions the price has dipped below intraday but each day the close has been higher. We would look for the close below the level to confirm the break but it is always nice to see a move away on the day of the break.

Of course, with the Swiss National bank in the wings - as it has already voiced its displeasure with an over strong Swiss Franc - the pair might be supported on dips. However, their concern may be more focused on the more local EURO. Incidently, the EURCHF is up today, but is still near the low levels since the intervention by the SNB took place in March. It tested the 50% retracement level of the move higher in March which included the record spike from the central banks direct intervention in the market. That level comes in at the 1.5012 level. The low was 1.5014. So although the key level looms large today, any dramatic move down, will be accompanied by an eye on the chance for intervention. As a result, there is likely to be bids on dips.

Check Out These Related Posts:

Money Markets 30-Year Treasury Bond Comes Into Confluence Support Exclusive Interview With One Of The Most Sought-After Fund Managers Part II Why Muni Bond And ETF Demand Should Remain Strong For Now

USA Euro: Turning Down Secretive Bank Stress Tests Heighten Investor Stress Forex Trading: USD/CHF Tests Moving Average Support Again

Try Currency Trading with a Free $50,000 FOREX.com Practice Account

• Trade currencies and gold - no risk, no obligation
• Access our award winning trading platform
• Utilize training & educational tools, including free daily webinars