USD/CHF turned bullish from July until the end of September, but since the beginning of last month sellers have taken control, as markets have shown signs of concern with geopolitics maintaining high levels of tension. Recently, the FED has been weighing ion this pair, as markets expect no more hikes by them, which has turned the USD bearish.
In late October this pair fell below 0.90, but it stopped at 0.8950s and started to rise again. However, because there is a lot of uncertainty, sellers have taken the lead right now, with the USD retreat gaining momentum. As a result, the price has slipped below the 0.8850 level and more declines are expected in the coming days/weeks.
The Swiss Industrial Production data which was released last week came in better-than-expected and gave the Swiss Franc (CHF) a gentle boost, while expectations that the Federal Reserve (FED) is finally done raising interest rates are putting bearish pressure on the US dollar (USD). The annualized third quarter reading for Swiss Industrial Production was 2%, up from the previous quarter’s corrected -0.7% reading of -0.8%.
USD/CHF fell from above the 0.9000 handle last week, with the Swiss National Bank chairman making some hawkish comments, to trade into the consolidation range of the next week as a result of the Franc’s strong appreciation earlier in the week. USD/CHF is currently trading below the 0.8850 level, and sellers have pushed the price below the 100-day Simple Moving Average (green), with several daily candlesticks below it. Buyers couldn’t be able to push the price above it and now sellers have pushed this pair further below, so further losses are expected here and we are trying to sell retraces higher.