There Looks to Be More Downside in the USD/CHF to Come
Rowan Crosby • 1 min read
The USD/CHF has been selling off in a big way over the course of the last week. The weakness that we’ve seen in the USD has certainly been the driving force in the major pairs and it has wiped out the best of them.
However, what was interesting on Tuesday was the Swissy to me really underperformed. There was a slight rebound in the US Dollar Index (DXY), but the USD/CHF was extra weak.
That is telling me that we have the potential to outperform as we break down lower.
Key Downside Targets
The reason 0.9600 is just so important to the Swissy, is that there isn’t much below. The next major support level sits at 0.9450.
That gives us a fair bit of downside and what is a decent risk reward if we can break clear of 0.9600. However, we will want to see a meaningful break of that level. A stop above 0.9650 will be more than enough to see if we can get some more downside for the rest of the week.