Forex: USD/CHF explodes to session highs in Cyprus panic move

FXstreet.com (Barcelona) - The USD/CHF spent much of Monday morning suffering from optimism that was helping sustain the EUR during European trading. However, that move has quickly changed, after the Chairman of Cypriot Parliamentary Finance Papadoloulos that said they must assess benefits of a euro exit. This sent the pair shooting towards session highs at 0.9440/46, though the cross has since eased back to 0.9333/35.

The USD/CHF moved to the upside again benefiting from consolidating above its linear regression indicators but still stable below key support level of the upside move. To confirm the bullish move, the pair should consolidate again above 0.9495 whereas momentum indicators tend to be negative.” notes the ICN.com analyst team.

According to Research Analyst Gareth Berry at UBS, “We reiterate our neutral stance on the USD/CHF – this morning's weakness tested the important support at the 0.9359 region. Ultimately, the risk is for extension of the downtrend to 0.9295. Meanwhile, resistance is at 0.9492 ahead of 0.9567.