Swiss franc weakened across the board today. USD/CHF used 100 DMA as a springboard for the move that took it to the highest level since January. EUR/CHF is trading at the highest levels since SNB discontinued minimum exchange rate at 1.20 in 2015. GBP/CHF is up 1000 pip from the low. A round of profit-taking would not come as a surprise at these levels.
al_dcdemo's Blog
USD/CHF in a sideways mode
USD/CHF started the week on a strong note but then gave back all the gains and is currently holding onto 0.9875 - 0.99 support area. A break below it would probably mean another shot at 0.98 - 0.985. Watch out for SNB Jordan's speech tomorrow. I wonder what would happen if he somehow forgets to mention that the franc is "still overvalued".
USD/CHF stabilizes near parity level
Volatility in USD/CHF has been dwindling during the past two weeks with the pair coiling around the parity level. Which way will it expand remains to be seen. Momentum favors the upside. SNB's Jordan speaks later today.
Swissie on the way to 0.95
SNB is among those central banks that is not in hurry to hike rates. Moreover, the bank will likely deliberately lag behind to prevent any strengthening of the franc for which they already say is significantly overvalued.
EUR/CHF has been slowly grinding up on expectations that the ECB will move first. The pair traded to the highest this year yesterday. USD/CHF has been doing it's usual EUR/USD mirroring. Support at 0.95 in the former roughly matches the resistance at 1.15 in the latter.
EUR/CHF has been slowly grinding up on expectations that the ECB will move first. The pair traded to the highest this year yesterday. USD/CHF has been doing it's usual EUR/USD mirroring. Support at 0.95 in the former roughly matches the resistance at 1.15 in the latter.
USD/CHF remains supported in the dips
After trading to as low as 0.96 in the beginning of May, USD/CHF has been slowly but steadily recouping losses. At the last week's meeting, SNB reiterated their mantras that the Franc is overvalued and that they will continue with ultra-easy monetary policy.
That shall keep the pair supported as long as EUR/USD is in correction mode. 0.98 - 0.9825 (March low, 2011 - 2016 trendline, 50 DMA) is the next target. 0.97 - 0.9725 is likely to see some stronger demand come in.
That shall keep the pair supported as long as EUR/USD is in correction mode. 0.98 - 0.9825 (March low, 2011 - 2016 trendline, 50 DMA) is the next target. 0.97 - 0.9725 is likely to see some stronger demand come in.
USD/CHF consolidates below 0.97 ahead of the FOMC
Swiss franc is one of the best performing major currencies this year. Euro strength and U.S. dollar weakness are both supporting this. SNB meets tomorrow and no change is expected from them for at least as long as ECB keeps rates on the floor.
USD/CHF encountered some demand ahead of 0.96 before pulling from the lows. If that goes, 0.95 area looks stronger and might be backed by SNB. 0.97 - 0.975 is the initial resistance. 0.98 - 0.985 is another one.
USD/CHF encountered some demand ahead of 0.96 before pulling from the lows. If that goes, 0.95 area looks stronger and might be backed by SNB. 0.97 - 0.975 is the initial resistance. 0.98 - 0.985 is another one.
USD/CHF nearing 0.95 level
Yesterday's bout of risk-off in markets didn't impact USD/CHF as much as USD/JPY. The former continues to move in tandem with EUR/USD, especially since U.S. dollar weakness has been driving most pairs recently.
USD/CHF broke the six-month consolidation to the downside and fell below 2011 - 2016 trendline in the process. No sign of SNB as yet but EUR/CHF is well off the floor anyway. Area near 0.95 looks like a strong support with 0.97 the initial resistance.
USD/CHF broke the six-month consolidation to the downside and fell below 2011 - 2016 trendline in the process. No sign of SNB as yet but EUR/CHF is well off the floor anyway. Area near 0.95 looks like a strong support with 0.97 the initial resistance.
Swissie benefits from risk-on
Swissie rose about 200 pips over the past two weeks, reflecting better risk sentiment as Brexit worries subsided. SNB stand ready to intervene whenever they deem necessary. Latest U.S. labour market figures were helpful too.
The pair is now holding above 0.98 and 200 DMA (~0.9850). The area between the levels is the initial support ahead of 50 DMA and 100 DMA near 0.9750. 0.99, May high (~0.9950) and parity (1.00) are the next targets.
The pair is now holding above 0.98 and 200 DMA (~0.9850). The area between the levels is the initial support ahead of 50 DMA and 100 DMA near 0.9750. 0.99, May high (~0.9950) and parity (1.00) are the next targets.
Swissie looks heavy but supported
Since peaking near 1.0325 in November, Swissie has been making lower highs. It has remained supported in the dips though with SNB no doubt playing its part.
0.98 is an important pivot that goes back several years. It is currently reinforced by 200 DMA. If this level gives way, 0.95 - 0.96 will come into focus. 50, 100 DMA and the parity level are defending the topside.
0.98 is an important pivot that goes back several years. It is currently reinforced by 200 DMA. If this level gives way, 0.95 - 0.96 will come into focus. 50, 100 DMA and the parity level are defending the topside.
Swiss franc gains with SNB on the sidelines
Yen has not been the only currency to benefit from safe haven flows recently. Swiss Franc has appreciated five cents so far this month with USD/CHF closing in the red in seven out of eight trading days. SNB seem to be sidelined for the moment but probably not for long.
In a sharp sell-off, the pair broke below December low (~0.98) before it stalled at the confluence of the declining 2003 - 2015 trendline and 200 DMA. Ascending 2011 - 2015 trendline is the next major target while the broken 0.98 …
In a sharp sell-off, the pair broke below December low (~0.98) before it stalled at the confluence of the declining 2003 - 2015 trendline and 200 DMA. Ascending 2011 - 2015 trendline is the next major target while the broken 0.98 …