- The USD/CHF is currently unable to continue the rally as European stock indices and the technical configuration keeps a lid on the pair.
- The USD/CHF appreciated almost 900 pips in recent weeks on the back of US Dollar strength lead by expectations of more rate hikes by the Fed in 2018.
The USD/CHF pair is trading at around 1.0000 virtually unchanged on Friday as the market is in consolidation mode for the 11th day in a row.
The Swiss franc found in an intraday ceiling in Asia at 1.0018 and then fell below the parity level in early Europe and is now coiling around 1.0000 at the time of writing.
The USD/CHF is in its 11th day of consolidation after the strong bullish move of the last weeks. A strong US dollar demand is behind the rally as the 10-year US Treasury yield benchmark is also breaking above multi-year highs.
Keeping a lid on the rally is the technical double top with the high of one year ago at 1.0038 and the European stock indices which are also trading mainly sideways in tandem with USD/CHF. In fact, the Swiss franc is considered by many a safe-haven currency in times of uncertainties. Some analysts argue that stocks in Europe are struggling to make any significant breakout as Italian political uncertainties keep market participants somewhat cautious.
USD/CHF daily chart
-636622465738398568.png)
The trend is bullish and resistance is seen at the 1.0059 high of 2018 followed by 1.0100 and 1.0200 psychological figures. On the other hand, the bears should expect support at 0.9957 swing low and then at the 0.9900 figure. The Swissy is trading above its 50, 100 and 200-period simple moving averages on the daily chart suggesting a strong upward momentum.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.