Flash: US debt ceiling looming. What about the EUR/USD? – UBS and Commerzbank

FXstreet.com (Edinburgh) -The shared currency remains anchored around the key level at 1.3520 on Thursday, keeping alive the weekly 1.3460/1.3540 range so far. No relevant results is expected in the region, with US GDP Annualized and the labour market data as the main catalysts ahead in the day.

Geoffrey Yu and Gareth Berry, Strategists at UBS, remain bullish on the pair, arguing “Resistance is at 1.3569, a break above which would open the way to major resistance at 1.3711. Support is at 1.3462 ahead of 1.3392”.

“Initial support remains the 1.3453 August high. Only a close below here would alleviate immediate upside pressure and signal a slide back to the 1.3278/1.3168 55 and 200 day ma”, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank. The expert also observed that technical studies would not rule out a bull attempt to 1.3585 and even 1.3730.

USD/CHF capped by 0.9100

The USD/CHF is trading below the 0.9100 crucial resistance level both on worries about the looming political drama regarding the “debt ceiling”, as well on the very soft US data.
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Flash: Mild market weakness the historic precursor to US Gov shut down - DB

Deutsche Bank DB FX strategist Alan Ruskin notes that of the last 17 government shutdowns, the S&P 500 has showed a pattern of being down in the 10 days before shutdown (median performance -0.33%) and up 10 days after any shutdown resolution (+1.1%).
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