There seemed constant underlying demand for USDCHF all of Tuesday. While there wasn't a clear catalyst for the move - it looked very much transactional - the buying seemed to eventually have stopped into the European close. Whether there will be a continuation on Wednesday, will need to be seen. Technical resistance comes up right here at 0.9220 and the short-term downtrend comes in around .9240/50. The next levels after that are 0.9310 and 0.9360.
EURCHF was mostly impacted by the USDCHF demand with EURUSD trading bid on Tuesday as well. The cross is 100 pts higher to where it was 24 hours ago. Technical resistance comes in at the 1.00/20 level. Unless the demand in USDCHF resumes I would expect the cross to eventually top out again. I prefer to trade it from the short side on current level and would re-evaluate on a break above 1.0020.
- UBS Strategy
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