- 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|
|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
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.