Forex | Forex | Forex: USD/CHF collapses to post 2009 low (03/08/2009 14:53:00)

Forex: USD/CHF collapses to post 2009 low

Fxstreet.com (Barcelona) – The USD/CHF has reacted down after the better than expected US ISM index and Construction spending. The Dollar has collapsed around 100 pips against Swissy from 1.0670, in the minutes previous to US data release, to post 2009 lowest level at 1.0569. Currently the pair is trading around 1.0585/95, posting 1.00% daily losses from opening price action.

ISM manufacturing Index rose from 44.8 on June to 48.9 in July, well above the 46.5 expected, approaching levels above 50 which means expansion of the sector's activity.

The ecPulse.com analysis team comments in the fundamental view: “The manufacturing sector in the United States continues its recovery phase from the worst recession since WWII, as activity seems to be picking up recently amid better economic conditions all around the globe, while construction activity also seems to be recovering after being hammered by the ongoing recession. The Institute for Supply Management released today its manufacturing index for the month of July, as the manufacturing index rose to 48.9 from the prior estimate of 44.8 and well above median estimates of 46.5, also signaling the manufacturing sector is on course to recovery.”

Valeria Bednarik, Fxstreet.com collaborator, comments: “Pair remains under selling pressure, capped by the 1.0700 level. Consolidating just above daily low, expect falls to remain limited in the pair, as chances of an intervention increase at current levels. Indicators support some downside continuation and 1.0580 is the most likely target under today’s low.”

Bednarik provides us with her levels: “Support levels: 1.0650 1.0620 1.0580. Resistance levels: 1.0700 1.0730 1.0770.”

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