- USD/CHF constrained by a 20-day trend of SMA and April near 0.8000.
- RSI points to building a stubborn shoot, although still below neutral.
- The continuation of the bear can be directed until July to 0.7919 and 0.7872.
USD/CHF consolidates during the North American session are flat below 0.8000 figures, ready to end the week with 0.36% of profits. The risk mood has strengthened the green place, which has so far regained some land this week.
USD/CHF price forecast: technical perspectives
He established that the fall of USD/CHF is to be continued, so rallies should be sold in a miniature period. In addition to the key resistance found on a 20-day SMA at 0.8037, there is a resistance trend line pulled from April 2, near 0.8000, which is the first line of defense for bear.
Nevertheless, the momentum indicates that the buyers collect the ground, as shown in the relative strength index (RSI), a bit aiming, towards their neutral line.
As a result of the continuation of the bear, the first USD/CHF support would be the lowest level of July 10 0.7919. If it is exceeded, the next stop would be the lowest level of July 1 0.7872.
USD/CHF price chart – every day
FAQ of the Swiss franc
Frank Swiss (CHF) is the official currency of Switzerland. This is one of the ten most rotating currencies around the world, reaching volumes that significantly exceed the size of the Swiss economy. Its value depends on the broad market mood, the economic health of the country or the actions taken by the Swiss National Bank (SNB). In the years 2011–2015 the Swiss Frank was set at EURO (EUR). PEG was suddenly removed, which caused an enhance in the franc value by over 20%, causing confusion in the markets. Although PEG does not apply, CHF fortunes are usually strongly correlated from the euro due to the high dependence of the Swiss economy from the neighboring euro area.
FRANC (CHF) Swiss is considered to be protected or currency, which investors buy in times of market stress. This is due to the perceived status of Switzerland in the world: a stable economy, a sturdy export sector, huge central bank reserves or a long -term political position towards the neutrality of global conflicts make the country’s currency a good choice for investors escaping at risk. Turbulent times will probably strengthen CHF in relation to other currencies that are seen as more risky to invest.
The Swiss National Bank (SNB) meets four times a year – once a quarter, less than other huge central banks – decide about monetary policy. The bank is aimed at an annual inflation rate less than 2%. When the inflation is above the target or it is expected that it will be above the target in the foreseeable future, the bank will try to tame the enhance in prices, raising the policy rate. Higher interest rates are generally positive for the Swiss franc (CHF) because they lead to higher crops, which makes the country a more attractive place for investors. On the contrary, lower interest rates tend to weaken CHF.
The release of macroeconomic data in Switzerland is the key to assessing the state of the economy and can affect the valuation of the Swiss Francang (CHF). The Swiss economy is essentially stable, but any sudden change in economic growth, inflation, current account or central bank foreign reserves can potentially cause CHF movements. Basically high economic growth, low unemployment and high trust are good for CHF. And vice versa, if economic data indicate a weakening rush, CHF probably absorbs.
As a miniature and open economy, Switzerland is strongly dependent on the health of neighboring euro -zone economies. The wider European Union is the main economic partner of Switzerland and a key political ally, so the stability of macroeconomic and monetary policy in the euro area is necessary for Switzerland, and therefore for Swiss franc (CHF). With such a relationship, some models suggest that the correlation between the fate of the euro (EUR) and CHF is over 90%or is close to the ideal.
