USD/CHF Technical Analysis: Significant support for Swissy
Brexit is once again the focus of attention. Today the UK Parliament votes on Brexit Plan B. Many investors fear a general weakness of the economy, and these fears are heightened because the International Monetary Fund (IMF) has also downgraded its forecast for the current year.
Beside Brexit, there is also uncertainty in the trade dispute with China and significant risk in the euro area regarding Italy. All in all, these are anything but constant times. In periods of uncertainty, investors often seek shelter in so-called „safe haven“ investments. Traditionally, such investments have included gold, the Japanese yen, and the Swiss franc.
Some investors have already abandoned the U.S. dollar fearing the impact of the long stalemate in government spending may be more significant than previously thought. This could also cause the Federal Reserve to slow down, with further interest rate moves, making the US dollar even less attractive.
Reason enough to take a closer look at the Swissy (USDCHF). Currently, the USDCHF is trading at a significant support level, around 0.9905. If the market drops out here, further support is waiting at the lows of the past weeks in the area at 0.9847. If the Swissy can garner further support, first the highs of the last days at 0.9974 must be passed. The next target could be highs in the area of 1.005.
USDCHF (Swissy) Daily Chart | Source: ActivTrader
Written by Daniel Schuetz, External Analyst
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