While most of us were busy enjoying the weekend with the amazing weather in NYC and the closing of the Winter Olympics, G20 leaders were discussing the fate of the world economy. Central bankers and finance ministers from the G20 nations agreed to come up with policies that would boost economic growth by $2 trillion, which is a 2% increase in global GDP. But as yet no plan on how to get there. Giving a nod to the volatility caused by the Fed’s tapering, the group put out a joint statement that central banks will “maintain their commitment that monetary policy settings will continue to be carefully calibrated and clearly communicated”. So glad they closed that gate – only months after the horse had bolted.
While everybody’s talking about the Euro, I would like to take a moment and talk about USD/CHF, which is just approaching a support level at 0.88338 on the daily dance floor, while dancing within a downward channel. A break below this support level could push the pair down toward the bottom line of the channel at the 0.86 area, while failure to break through, could throw the pair back up to the upper range.
Taking a closer look at the pair’s movements on the 6 hour dance floor, our bullish targets are the Fibonacci levels at 0.89119, 0.89591 and 0.9000.
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