A Christmas Rally For Safe-Havens - Forex News by FX Leaders
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A Christmas Rally For Safe-Havens

Posted Tuesday, December 24, 2019 by
Shain Vernier • 1 min read

It has been a solid day for safe-haven values, led by a 1% uptick in gold. In addition, both the Swiss franc and Japanese yen are posting slight gains vs the Greenback. All in all, it appears as though some of the more risk-averse traders are hedging their bets ahead of the Christmas market closure.

Judging participation in sessions that surround holidays often proves to be difficult. Last year brought huge action in the equities markets throughout the holiday season; however, that was the exception to the rule. Most of the time, we see quiet trading conditions and smaller traded volumes. “Quiet” is a good word to describe today’s forex action, with modest ranges setting up across the majors.

However, led by bullion, safe-havens are showing some life. Let’s take a minute and break down the daily technical outlook for the USD/CHF.

Safe-Haven Values On The Rise Ahead Of Christmas

The USD/CHF has been on a steady decline throughout December. Rates have fallen from above par value to the neighborhood of 0.9750. This is a loss of more than 250 pips for the month.

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

Here are two levels to watch for the remainder of the week:

  • Resistance(1): Daily SMA, 0.9834
  • Support(1): Psyche Level, 0.9770

Overview: Although the forex appears to be in a deep slumber now, don’t get too used to the muted conditions. The end of the year is right around the corner, and with it, institutional book-balancing. Be on the lookout for volatility to pick up shortly after Christmas, more than likely on Monday, 30 December.

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About the author

Shain Vernier // 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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