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FOREX: USDCHF Consolidating Near Three-Week Lows

FOREX
BulletMarketsForeign Exchange Bullets
  • USDCHF (-0.14%) has been consolidating near three-week lows having entirely reversed its CPI-driven rally late last week, assisted by the broad pressure on the greenback. The pair closely matched the Monday lows earlier in the session, although ranges today have been relatively contained across G10.
  • Immediate support for the pair is seen at 0.8611, the 50-day EMA and a meaningful break would signal scope for a move back towards a cluster of daily lows around the 0.8400 handle, a key medium term support area for the pair.
  • The Swiss Franc’s funding status could easily thrust it back into the spotlight if we were to see a substantial repricing in US rates overnight. A potential trump victory and any ensuing CHF weakness would be underpinned by SNB easing expectations that have become more aggressive in the last months amid low inflation - contrary to the US, where cut pricing was pared back since October.
  • In terms of USDCHF resistance, we see the nearest levels to watch as 0.8711 and 0.8749, the Aug 15 high. Above here, an influential pivot point at 0.8820 would be the most notable short-term target. While not necessarily in play over the next 24 hours, a protracted move higher for the greenback would refocus attention on 0.9050 and a key resistance zone between 0.9224/44.
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  • USDCHF (-0.14%) has been consolidating near three-week lows having entirely reversed its CPI-driven rally late last week, assisted by the broad pressure on the greenback. The pair closely matched the Monday lows earlier in the session, although ranges today have been relatively contained across G10.
  • Immediate support for the pair is seen at 0.8611, the 50-day EMA and a meaningful break would signal scope for a move back towards a cluster of daily lows around the 0.8400 handle, a key medium term support area for the pair.
  • The Swiss Franc’s funding status could easily thrust it back into the spotlight if we were to see a substantial repricing in US rates overnight. A potential trump victory and any ensuing CHF weakness would be underpinned by SNB easing expectations that have become more aggressive in the last months amid low inflation - contrary to the US, where cut pricing was pared back since October.
  • In terms of USDCHF resistance, we see the nearest levels to watch as 0.8711 and 0.8749, the Aug 15 high. Above here, an influential pivot point at 0.8820 would be the most notable short-term target. While not necessarily in play over the next 24 hours, a protracted move higher for the greenback would refocus attention on 0.9050 and a key resistance zone between 0.9224/44.