CHF

The Swiss Franc Continues To Pound The Greenback

Posted Wednesday, August 29, 2018 by
Shain Vernier • 1 min read

The U.S. indices are churning higher on the heels of strong U.S. GDP (Q2) revisions. As a result, safe-haven assets gold and the Japanese yen have struggled to gain any footing. However, the Swiss franc is attracting investors in droves and has routed the USD for the fifth time in six sessions.

At press time, the USD/CHF is off more than 30 pips for the day and 100 pips for the week. Bearish participation has been the norm, with today’s positive U.S. GDP doing little to curtail the action. For now, the USD/CHF is actively seeking a bottom.

The Swiss Franc Is On The March

Following an early-session test of the .9700 handle, the USD/CHF has bounced back toward a key level of macro-support.

USD/CHF, Daily Chart
USD/CHF, Daily Chart

For the near future, I have two levels on my radar:

  • Support(1): 38% Retracement of 2018’s Range, .9732
  • Support(2): Psyche Level, .9700

Overview: In a similar fashion as the USD/CAD, the USD/CHF is threatening to enter corrective territory. If price breaks below the .9700 handle with vigor, then we will have to abandon the prevailing long-term bullish bias. The 38% retracement of 2018’s range (.9732) is a big deal — if it falls, a test of .9500 is likely for September.

Ultimately, it appears that the winds are changing for the Greenback. It has been a great bullish run throughout 2018. However, given the bearish pressure in the USD/CHF and USD/CAD, the USD may be ready to give back yearly gains across the forex.

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About the author

Shain Vernier is our US Analyst
Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.
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