A Flight for Safety Is Underway – Mind the Yen and the Swissy
Last evening, after Nowotny´s comments about the ECB and a possible deposit rate hike soon, the forex market started feeling more confident. The safe haven currencies such as the Yen and Swissy usually suffer when the market is in the mood for some risk appetite.
That´s the reason that the Yen has been the weakest among major currencies in the last couple of trading sessions and that´s the reason for the spike in EUR/CHF as well. Too bad our buy forex signal here missed take profit by only a couple of pips.
But, in the last few hours we have seen these two safe haven currencies advance against the Buck, despite the other majors pairs (EUR/USD, GBP/USD and NZD/USD) still sliding.
The 2 moving averages are protecting the downside as well
EUR/CHF dipped below 1.07 again, which opened an opportunity for us. We just issued a buy signal in this forex pair and I´m pretty confident about that. The 1.0680 level has been a really strong support level and we saw it reverse this pair yesterday when the sellers decided to have a go at it, so I think we have our back covered in this.
At the moment I´m more worried about USD/JPY. It´s failing to break below 113, but the price has been sticking around these levels for too long. Let´s hope the US consumer report shifts the market sentiment, which will give the buyers the strength they need to push higher.
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