The euro fell near its two-year low against the dollar on Tuesday on concerns about the cost of shoring up Spanish banking system pushed Spanish debt yields to around 6.5%. Pessimism over Greece is somewhat receding, however, worries over Spain are growing and markets are watching whether the Spanish bond yield will hit the 7% mark. Looking at past history, 7% yields on 10-year bonds are unsustainable since the three euro zone countries that asked for bailouts all did after their bond yields hit 7%.
USD/CHF
The pair is testing its 0.9605 resistance level which happens to be a crucial level. If the pair breaks and closed above this level on the four hour chart, then expected the upside bias trend resume its course towards the 0.9770 level.
USD/CHF" title="USD/CHF" width="732" height="455">