Forex: USD/CHF strolling since last Thursday

Since last Friday that the USD/CHF has been drawing trading waves as it moves back and forth from just below 0.9300 but always finding itself capped around 0.9325. Today was no different and after reaching as high as 0.9318, the market pulled to the lower band of the range. However, at the moment of writing, the USD/CHF is attempting at extending the downside.

Italian Parliamentary elections will be the major focus of the day, with voting ending at 14:00 GMT and first polls expected one hour later. Investors will be looking for win of PD + Monti (+158 seats) and hoping for the least support for the Five Star Movement that could harden a working coalition.

“While this (0.9319) may hold the initial test, we would expect dips lower to now be relatively tepid, we have a near term support line at 0.9191 and while above here we remain bid”, wrote Commerzbank analyst Karen Jones, pointing to key resistance and short term target remains the 0.9390 December high.