The Quick Reversal in USDCHF Suggests Further Upside
Last week we saw a quick 1 cent dip in CHF to USD rate, but the reversal was just as quick, suggesting that buyers are in control and ...
Last week we saw a quick 1 cent dip in CHF to USD rate, but the reversal was just as quick, suggesting that buyers are in control and the bullish momentum will continue. The dive came after the Israel-Iran attacks, but markets weren’t too spooked by that, which helped reverse the price back up.
USD/CHF Chart Daily – The 20 SMA Keeps Holding As Support
USD/CHF made a bullish reversal at the end of December and has been quite bullish this year, with the Swiss Franc being the weakest among the major currencies. This forex pair increased from 0.8330s and has gained more than 8 cents from the bottom, increasing above 0.90.
The USD/CHF pair experienced significant downward movement late last week in reaction to Israel’s midnight raid on Iran. This downward move sent the price down to 0.9010 but the round zone held as support. This forex pair bounced back when reports regarding the scope of the attack were released. Following the bounce, the pair reversed course and moved back up above 0.91, where it encountered selling pressure. As a result, the pair has established a technical trading range between these key levels.
Over the weekend the Swiss National Bank Chair Jordan spoke with Switzerland’s national broadcaster, Schweizer Radio und Fernsehen, expressing concerns about various economic indicators, stating that economic growth and productivity are too low, while the level of debt and deficits are too high. He emphasized the importance of monetary policy focusing on price stability rather than being used to finance debt. Jordan warned that if monetary policy were to be used for debt financing, it could lead to adverse consequences in the long run.
Swiss National Bank Chair Jordan Comments
- Economic growth is considered too low.
- Productivity levels are deemed insufficient.
- The level of debt is perceived to be too high.
- Deficits are seen as being too large.
The SNB chairman emphasized the importance of maintaining the monetary policy focused on price stability rather than using it to finance debt. He cautioned that if monetary policy were to be used for debt financing purposes, it could lead to unfavorable outcomes.
USD/CHF Live Chart
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