Forex: USD/CHF plunges to support at 0.9430/32 as Cyprus in focus

FXstreet.com (Barcelona) - The USD/CHF has fallen on the news of Cyprus, as investors await further news on the rapidly fluctuating situation that has gripped currency markets this week. During European trading Friday, the cross has fallen to the 0.9430/32 region, down a staunch -0.43% off its opening.

“In the event of a Cypriot exit scenario, we would expect a significant uncertainty shock but not as severe as that caused by the Lehman episode, given that the economic cycle and leverage has changed markedly”, wrote the analyst team at Merrill Lynch, estimating that such a worst-case scenario would imply a headwind to 2013 Eurozone GDP forecast of -0.5% of between - 1% and -2.5%.

Mataf.net analysts calculate that any further collapse in the USD/CHF will be fortified by supports at 0.9437, ahead of the 0.9417 handle, and ultimately 0.9395. Conversely, the pair will face short-term resistance at 0.9483, followed by 0.9505, and 0.9527.