Global macro overview for 24/11/2016:
Interesting comments from Swiss National Bank Governor Thomas Jordan hit the mass media this morning. In the interview for Swiss newspaper Tages-Anzeiger, Jordan confirmed that the Swiss franc is still highly overvalued over the Euro and SNB is ready to intervene in the currency market again if necessary. Moreover, he assured traders that negative interest rates remain a focal point in SNB’s monetary policy as this policy is appropriate in the current global environment. In conclusion, the overall SNB point of view regarding global monetary policy is still accommodative, but economists doubt whether SNB will decide to lower interest rates again before December FED meeting.
Let’s now take a look at the USD/CHF technical picture in the daily time frame. After the US presidential election, there is a global demand for the US dollar, so the bulls are now in full control over this market. The bull camp has managed to break out above the golden trend line and now it is trading close to the yearly highs. It is still unclear whether the market will test them, but just in case, the next support is at the level of 1.0091 and the next resistnace is at the level of 1.0256 and 1.0326.
The material has been provided by InstaForex Company – www.instaforex.com