Forex Trading Tools and Services

Currencies

USD/CHF Falls to 0.8950 as Bearish Bias Dominates, Targeting 0.8900 Support

  • BY
  • February 24, 2025
  • 0 Comments

The USD/CHF currency pair continues to go lower, trading around 0.8960 in Asian trading and sustaining losses for the third straight session. The technical indicators are indicating a persistent bearish bias, with the pair trading below both the nine- and 14-day EMAs and the RSI holding below the 50 mark, supporting further weakening. Market sentiment is pointing towards a move towards the psychological support level of 0.8900, and a break below this level may open the way for a further fall, possibly to the two-month low of 0.8736. On the other hand, a bounce above the nine-day EMA of 0.9009 may indicate a short-term bounce, opening the way for an advance towards the nine-month high of around 0.9201. KEY LOOKOUTS • The pair remains under bearish pressure, trading below both the nine- and 14-day EMAs, which reinforces a continued downtrend and potential further depreciation. • An RSI persistently below 50 underscores the bearish trend, signaling oversold conditions that may prompt an upward correction after further downside extension. • A break below the key support at 0.8900 would trigger further declines, with possible targets being the two-month low of 0.8736 if the selling pressure accelerates. • On the other hand, a break above the nine-day EMA of 0.9009 could be a sign of short-term bounce and lay the groundwork for moving higher towards the nine-month high of 0.9201. USD/CHF is still under strong bearish pressure, trading below the nine-day and 14-day EMAs, which supports a strong downtrend and further weakening. The 14-day RSI always stays below 50, reflecting oversold levels that could trigger a corrective bounce after more price falls. If the pair breaks below the key psychological support of 0.8900, it may speed up a deeper fall towards the two-month low of 0.8736. In contrast, a breakdown below the nine-day EMA at 0.9009 can initiate short-term recovery with a potential stage set for the testing of the nine-month peak around 0.9201. USD/CHF trades below crucial moving averages with the 14-day RSI below 50, indicating bearish sentiment and continued depreciation. Breaking below 0.8900 may send the pair towards the two-month trough at 0.8736, while advancing above 0.9009 may initiate a short-term correction. • Trading close to 0.8960 during Asian trading. • Sustained losses over three consecutive sessions. • Trades below both the nine-day and 14-day EMAs, showing bearish momentum. • The 14-day RSI is still below 50, supporting the bearish trend. • Psychological support at 0.8900, a break potentially triggering more declines. • A fall below 0.8900 might have the pair targeting the two-month low at 0.8736. • On the positive side, the nine-day EMA of 0.9009 is serving as the key resistance, with rebound potentially stretching to the nine-month high around 0.9201. USD/CHF continues to be mainly bearish since the pair still continues to display vulnerability in the market. The pair is supported mainly by the sustained selling pressure that has held the pair below critical levels of support. Although the duo has seen its third straight losing day, there is a need to watch for possible changes in market sentiment that may affect its direction in subsequent sessions. Lacking major reversals, USD/CHF may continue being susceptible to more downgrades in light of its prolonged bearish momentum. But traders need to monitor general economic trends or geopolitical events that may influence market trends and investor sentiment. USD/CHF Daily Price Chart Chart Source: TradingView Most market players are observing the pair with interest, given the general economic uncertainties and global financial trends that may be affecting investor sentiment. In the future, analysts are keeping an eye out for how changes in global economic policies and market risk appetite may affect the USD/CHF dynamic. While some believe the situation will stabilize as market conditions change, others foresee that ongoing caution may cause further adjustments, and thus, keeping an eye on key economic events is crucial. TECHNICAL ANALYSIS USD/CHF shows a strong bearish trend, with the pair persistently trading below its nine-day and 14-day exponential moving averages. The 14-day RSI remaining below the 50 level further indicates the bearish momentum, implying that the market is now in an oversold position. Levels of importance are closely watched, with psychological support at 0.8900 potentially acting as a key hurdle, and potential support around the nine-day EMA of 0.9009 providing a potential turning point should the buyers enter. FORECAST Should market sentiment change and the general public regain confidence in buying the pair, the USD/CHF may break beyond near-term resistance levels, which can trigger a reversal move that would likely drive the pair toward higher ground. Increased buying interest and positive macroeconomic news may help sustain this recovery, and it is possible that a change in momentum is on the cards. If the pair reverses the current bearish momentum and can break above the nine-day EMA, increased buying interest may be seen. A recovery in the 14-day RSI, rising from oversold levels, can aid in forming a short-term uptrend, putting the USD/CHF on course to challenge resistance levels and target the nine-month high. On the other hand, if there’s sustained selling pressure, the pair may continue probing lower support levels. A breakdown below the 0.8900 threshold could lead to further losses, with ongoing RSI weakness support for bearish sentiment and pushing the pair towards the lower lows seen in the last couple of months. A breakdown below key support levels may deepen the fall, suggesting that persistent bearish conditions may push USD/CHF to challenge lower levels.

Read More
Currencies

USD/CHF Weakened Due to Trade Tensions and Minor USD Decline: Major Market Developments

  • BY
  • February 20, 2025
  • 0 Comments

The USD/CHF currency pair has weakened to the 0.9025 level, ending a three-day winning streak due to fresh US Dollar (USD) selling and increasing global trade tensions. New tariff threats from the previous US President Donald Trump have created fear of a trade war, driving demand for safe-haven currencies such as the Swiss Franc (CHF). In addition, a drop in US Treasury bond yields and a risk-averse market sentiment have added to the pressure on the USD. Expectations of a hawkish Federal Reserve (Fed) outlook may, however, offer some relief to the USD, potentially capping further losses in the pair. Market participants now look forward to future US economic releases such as Weekly Initial Jobless Claims and the Philly Fed Manufacturing Index, as well as speeches of Federal Open Market Committee (FOMC) members, for new trading hints.  KEY LOOKOUTS • New trade war fears induced by fresh threats from Donald Trump support demand for safe-haven currencies such as the Swiss Franc (CHF) and clobber USD/CHF. • Rebounding selling in the US Dollar, combined with falling Treasury yields, bears on USD/CHF even as a hawkish Federal Reserve tone lends some support. • Market participants look to important US economic data releases, such as Weekly Jobless Claims and the Philly Fed Manufacturing Index, which have the potential to impact USD/CHF price action. • Federal Reserve commentary could shed light on future monetary policy, potentially influencing market sentiment and fueling USD/CHF volatility. USD/CHF is under pressure as increased US Dollar (USD) weakness and rising trade tensions cool investor appetite. Fresh tariff threats from former US President Donald Trump have fueled fears of an impending trade war, propelling demand for safe-haven currencies such as the Swiss Franc (CHF). Further, a drop in US Treasury bond yields has eclipsed the hawkish tone of the Federal Reserve (Fed), capping USD’s revival. But the next releases of US economic data, such as Weekly Jobless Claims and the Philly Fed Manufacturing Index, and speeches by influential FOMC members may bring new information about monetary policy and drive USD/CHF price action in the next sessions. The USD/CHF currency pair loses ground as increased USD selling and growing trade tensions spur demand for safe-haven assets such as the Swiss Franc. Falling US Treasury yields dominate the Fed’s hawkish tone, while future US economic releases and FOMC speeches could direct additional price action. • The pair falls to the 0.9025 region, ending a three-day winning streak in the wake of increased USD selling and escalating trade tensions. • New tariff news drives international trade war fears, which support demand for safe-haven currencies such as the Swiss Franc (CHF). • Weakening US Treasury bond yields and overall risk aversion hold down the US Dollar, which restricts its rally. • In spite of dovish FOMC minutes, hopes of a prolonged rate pause can lend some support to the USD. • Watch US Weekly Jobless Claims and the Philly Fed Manufacturing Index for indications of economic health and potential market effect. • Remarks by Federal Reserve officials may influence expectations of monetary policy and guide USD price action. • A drop below 0.9025 can expose the pair to more weakness, with the next important support in the 0.8970-0.8965 zone. The USD/CHF currency pair continues to be affected by the developments in world trade and investors’ mood, especially following recent tariff threats from former US President Donald Trump. The threat of new tariffs created fears of an impending trade war, leading to investors’ appetite for safe assets such as the Swiss Franc (CHF). This change of market sentiment reflects wider economic uncertainty, as the policies of trade continue to weigh on global financial stability. Furthermore, the conservative tone in equity markets suggests investors are taking prudent stock of risks, with a special emphasis on safe-haven currencies in light of geopolitical and economic uncertainty. USD/CHF Daily Price Chart TradingView Prepared by ELLYANA Meanwhile, the movement of the US Dollar is influenced by a combination of economic signals and policy expectations. Although the Federal Reserve has been hawkish, recent market developments indicate that investors are keenly interested in future releases of economic data. Important reports such as the Weekly Initial Jobless Claims and the Philly Fed Manufacturing Index are likely to reveal more about the health of the US economy. Moreover, Federal Reserve officials’ speeches can provide greater insight into monetary policy in the future, shaping market expectations and impacting overall investor sentiment. TECHNICAL ANALYSIS USD/CHF currency pair has been resisted at the 0.9055 level, where selling pressure was witnessed, resulting in a pullback towards the 0.9025 region. The pair’s failure to hold gains indicates a possible change in momentum, with traders closely monitoring major support levels around 0.8970-0.8965. A breakdown of this level could set the stage for additional decline, while a rebound from here might signal consolidation or fresh buying interest. To the upside, continued action over 0.9055 could enhance bullish pressure, driving the pair to the next resistance around 0.9100. Momentum oscillators like the Relative Strength Index (RSI) and Moving Averages will play a key role in establishing the next directional impulse. FORECAST If the USD strengthens on hawkish Federal Reserve cues or better-than-anticipated US economic news, the USD/CHF currency pair may try to bounce back. A breakout above the 0.9055 resistance level may encourage more buying interest, and the pair may head towards the 0.9100 psychological level. Any relief in global risk appetite or relaxation in trade tensions also may take away demand for the safe-haven Swiss Franc, supporting the USD. Investors will also be monitoring future FOMC speeches for interest rate direction clues, which would support the dollar and push the pair higher. To the downside, ongoing global trade tensions and risk aversion may keep the Swiss Franc underpinned, capping any USD/CHF recovery. If the pair cannot hold above the 0.9025 area, it may see losses extend to the 0.8970-0.8965 support area. A clean breakdown below this level could initiate further selling pressure, leaving the pair vulnerable to deeper losses. Weaker

Read More
Currencies

USD/CHF Analysis: Struggling As Monetary Policies Diverge

  • BY
  • January 17, 2025
  • 0 Comments

The USD/CHF currency pair dropped during Friday’s European session and continued to stay near the significant support level of 0.9100 despite a strong US Dollar, buoyed by investor apprehension as Donald Trump’s inauguration draws near. The Swiss Franc traded stronger than its peers to cap off the week despite expectations of further monetary easing by the SNB to deal with low inflation. Meanwhile, the US Dollar gained amid anticipation of Trump’s economic policies and a minor increase in the US Dollar Index (DXY). On the technical front, the pair exhibits strong bullish momentum, with the Relative Strength Index (RSI) and moving averages favoring an upside toward 0.9300, though a breach below 0.9000 could signal further weakness. KEY LOOKOUTS • Despite SNB’s dovish stance, CHF gains momentum, outperforming major peers as market participants brace for potential interest rate cuts amid low inflation risks. • The Greenback holds firm ahead of Trump’s inauguration, buoyed by investor optimism over the economic policies that are to be announced soon, even as dovish Fed bets increase following soft CPI data. • USD/CHF is bullish with RSI in the overbought region, and a break above 0.9300 could be seen, but a fall below 0.9000 could lead to bearish moves. • Traders focus on geopolitical and policy developments, with heightened volatility expected as the Swiss Franc and US Dollar react to economic shifts and central bank actions. The USD/CHF pair faced downward pressure during Friday’s European session, testing the critical 0.9100 support level despite the US Dollar maintaining resilience ahead of Donald Trump’s inauguration. While the Swiss Franc gained momentum against its major counterparts, with market expectations of further rate cuts by the SNB to tackle low inflation risks, the US Dollar remained buoyant. Investor sentiment was cautiously optimistic, with the Greenback finding support in hopes of forthcoming economic reforms, including potential tax cuts and trade policies, despite softer-than-expected US CPI data. On technical levels, it has bullish trends. The pair shows upside movements to 0.9300 based on 14-week RSI, which can break anytime and drop it to the disadvantageous side under 0.9000 support. • As at Friday’s European session, this pair is currently close to holding support at around 0.9100 by the Swiss Franc over the US Dollar. • Interest rate cut by the SNB to check the risk from low inflation might continue to send CHF bullish; therefore, their appeal is better. • Despite softer December CPI data raising dovish Fed bets, the US Dollar remains supported by investor optimism ahead of Donald Trump’s inauguration. • Traders are cautiously optimistic about potential reforms, including tax cuts and tariffs, expected to impact market sentiment and the USD’s performance. • Indicators such as the 14-week RSI and the 20-week EMA suggest bullish momentum, with resistance levels near 0.9300 in sight. • Further downward moves are likely if the breach below the psychological 0.9000 level is maintained, with the pair targeting around 0.8958 and 0.8900. • USD/CHF’s course will be further complicated by the opposing monetary policy expectations between the SNB and the Federal Reserve, which will keep the market focused on economic news. The USD/CHF currency pair lost marginal ground during Friday’s European session as it hovered near the psychological 0.9100 support area, while the Swiss Franc led its peers in gains. The Swiss National Bank is, therefore, not expected to ease off its dovish stance going forward, despite markets expecting deeper interest rate cuts in a view to combat risks of inflation remaining below target levels. This stance has strengthened the Swiss Franc; however, there is a close attention on the economics of prolonged ease in monetary terms. Despite these advances, the negative for the duo has been curtailed by a resilient US Dollar, which draws strength from still cautious optimism toward President-elect Donald Trump’s ascension to office and the expectations that come with that of economic reform. USD/CHF Daily Price Chart Sources: TradingView, Prepared By ELLYANA In the US, the Greenback held firm with a softer than expected Consumer Price Index reading in December that left more room to bet on an accommodative Federal Reserve. The US Dollar Index (DXY) ticked higher, reflecting market confidence in Trump’s forthcoming policies, including possible tax cuts and trade initiatives. Technical indicators support a bullish outlook for USD/CHF, with the 14-week Relative Strength Index (RSI) suggesting strong momentum and a potential upside toward resistance levels at 0.9300. However, if the pair fails to hold above the psychological support of 0.9000, it could signal deeper corrections into November’s high of 0.8958 and December’s low of 0.8900. The differing monetary policy outlooks between the SNB and the Federal Reserve continue to shape the pair’s trajectory, keeping traders vigilant. TECHNICAL ANALYSIS The USD/CHF pair is trading near the critical support level of 0.9100, while technical indicators suggest a cautiously bullish bias. The 14-week Relative Strength Index (RSI) remains within the bullish range of 60-80, showing significant upward momentum, while the 20-week Exponential Moving Average (EMA) trends upward near 0.8900, bolstering the long-term uptrend of the pair. A break above the October 2023 high of 0.9244 can take the pair towards resistance at 0.9300 and the 16 March 2023 high of 0.9342. Conversely, a drop below the psychological support at 0.9000 could be a catalyst for further downside towards the November 2022 high of 0.8958 and the December 2022 low of 0.8900, which would make them two key levels that traders need to watch. FORECAST The USD/CHF pair will experience a blend of bullish and bearish action as it confronts some critical technical and fundamental factors. On the positive side, the duo may gather momentum if breaks decisively above the October 2023 high at 0.9244, opening the door for testing of round-level resistance at 0.9300. Further exhaustion may take the pair back to its 15-month high at 0.9342 as well with strong bullish gauges incorporating a rising 20-week EMA and an RSI in the robust momentum zone. Deeper gains will be further driven by investor optimism on contemplated US economic reforms and

Read More