6-Feb-2014, GMT 11:00
Investors are shy but consequent buying USD/CHF. Since CHF is pegged with EUR, Dollar has tough time against this considered as “safe haven”, 0 rates currency. Technically volatility is weakening after EM-selloff two weeks ago and we are looking for some momentum to arise. Bulls and bears stick to 0.9000 figure and probably both sides feel comfortable about it for now. We notice strong support at 0.8930 as well as strong resistance at 0.9130. These levels provide potential for range in the nearest future with possible break to the upside. Therefore we may look for buy opportunity at 0.8950 with 110 pips Stop Loss and BE point at +180 pips.
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In terms of volatility we have the official Labor Report in USA at 13:30 GMT which is set to provide some decent move on the market. We believe, that negative impact of softer data may be limited while positive reading may wipe out USD bulls shyness. Another number to watch is Labor participation rate within Unemployment Rate. Possible outcomes seem also unsymmetrical in favor of dollar.
