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USD/CHF stalls just below 0.8900 as Swiss Fanco holds steady

  • The USD/CHF pair is around 0.8880, with the franc frozen after recent gains.
  • For the week, the CHF is up almost 2.2% against the USD.
  • The appetite to take refuge in safe assets remains a key theme underpinning market flows, to the benefit of the franc.

The USD/CHF pair moves around the 0.8880 level as the markets’ risk appetite deteriorates, but risk flights fail to move their bets on the Swiss Franc (CHF).

The Swiss Franc (CHF) has appreciated against the US Dollar (USD) recently, with the safe haven popularity of CHF in the EU bloc evident and the Swiss National Bank (SNB) determined to defend CHF using direct purchases in the market as much as necessary.

Despite the accumulation of short bets on the CHF, support from the SNB has prevented any significant depreciation of the Franc, and despite inflation approaching 1.7% in the Swiss economy, Switzerland enjoys an enviable position.

The SNB’s continued hawkish tone and Switzerland’s large net surplus keep USD/CHF pinned despite shifting market sentiment.

USD/CHF Technical Outlook

USD/CHF fell sharply this week to the 0.8850 area from the 200-day SMA in the 0.9000 area, and the pair is testing multi-month lows, with September bid lows near 0.8800 to reach.

The pair is following a pattern of lower highs since peaking near 0.9250 in early October. The latest swing high is at 0.9050, near the congestion zone of the 200-day and 50-day SMA.

USD/CHF Daily Chart

USD/CHF technical level


Latest price today 0.8881
Today Daily Change -0.0003
Today’s daily variation -0.03
Today’s daily opening 0.8884
daily SMA20 0.8988
daily SMA50 0.9023
SMA100 daily 0.8901
SMA200 daily 0.8995
Previous daily high 0.8903
Previous daily low 0.8855
Previous weekly high 0.9046
Previous weekly low 0.8954
Previous Monthly High 0.9244
Previous monthly low 0.8888
Daily Fibonacci 38.2 0.8873
Fibonacci 61.8% daily 0.8885
Daily Pivot Point S1 0.8858
Daily Pivot Point S2 0.8833
Daily Pivot Point S3 0.881
Daily Pivot Point R1 0.8906
Daily Pivot Point R2 0.8929
Daily Pivot Point R3 0.8954

Source: Fx Street

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