Forex Flash: USD/CHF stalled below 0.9311 allows slide back to 0.9222 - Commerzbank

Commerzbank analysts confirm that the USD/CHF is stalling around the top of its 3 month channel, at 0.9311 currently, and technically they would allow for some weakness towards the near term support line at 0.9222, while above here an upside bias is maintained. “The key resistance and short term target remains the 0.9390 December high. The market needs to clear 0.9390 on a closing basis to restore an upside bias longer term”, wrote analyst Karen Jones, pointing to a reinforced resistance by the 0.9357 55 week MA.

“A break above here will target 0.9513, the November 2012 high”, she continued, while below 0.9222, the USD/CHF would find support at 0.9144 “and that there is currently little impetus to sustain a move beyond .9000”.

Feb 28, 2013

Forex Flash: EUR/USD still pegged at below 1.3000 by Q4 – Westpac

At the monthly press conference on January 10, ECB president Draghi happily pointed to “a significant improvement in financial market conditions and a broad stabilization of cyclical indicators.” He was quite entitled to do so and we shared the optimism on EUR/USD as it probed as high as 1.3700 on February 1.

Forex: USD/CAD moves higher ahead of Canada and US data

The USD/CAD was able to retrace losses made just before the European session (down to 1.0217 low) and moved as high as 1.0248 on flows of risk-off mood about Italy's situation. Prime Minister Monti advised the new government to stick to the planned reforms and warned that granting postponement of deficit targets harms credibility, while President Napolitano said it is not possible to speed up process of forming new government.