A Steep Rally For The USD/CHF
Shain Vernier • 1 min read
It isn’t often that the Swissie is a leading mover and shaker on the forex. However, today is such a day, with the USD/CHF posting a 75 pip range. Following an early session rejection of the .9850 area, rates have rebounded dramatically. At press time, price is above .9925 and headed toward several topside resistance levels.
This week marks an active one for the USD/CHF on the news front. Aside from U.S. CPI and Retail Sales reports, the Swiss National Bank (SNB) is due out with its Interest Rate Decision and presser. Consensus estimates are expecting rates to come in at -0.75% for the twice-yearly announcement. Be sure to check back as we approach the SNB’s announcement scheduled for Wednesday’s U.S. overnight session.
USD/CHF Technical Outlook
As you can see from the daily chart below, today’s price action has been robust, to say the least. Rates are now firmly in the green and are approaching resistance.
Here are the levels to watch for the near future:
- Resistance(1): 62% Current Wave, .9952
- Support(1), Spike Low, .9862
- Support(2): Psyche Level, .9850 (not pictured)
Overview: This week is going to be a fantastic one to trade the Swissie. With economic releases due out from Wednesday until Friday, we may see a very different USD/CHF going into the December 19 FED meeting.
For now, it appears that par value (1.0000) is going to be a magnet for this market. Unless we see a major surprise in Wednesday’s U.S. CPI release, a return to par ahead of the SNB may be in the cards.