We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
Oil - US Crude
More View more
Real Time News
  • #GBPUSD plummets after new polls reveal Prime Minister Boris Johnson's Conservative Party is projected to win a smaller majority than previously anticipated. - BBG #Brexit #UKelection2019 https://t.co/PGMUcmS4le
  • $EURUSD Daily Pivot Points: S3: 1.102 S2: 1.1043 S1: 1.1054 R1: 1.1076 R2: 1.1089 R3: 1.1111 https://www.dailyfx.com/pivot-points?ref=SubNav?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • RT @EuropeElects: UK, YouGov MRP seat projection: CON-ECR: 339 (-20) LAB-S&D: 231 (+20) LDEM-RE: 15 (+2) SNP-G/EFA: 41 (-2) PC-G/EFA: 4 (-…
  • I am pleased to announce that my piece for @Diplomat_APAC has been published! In the article, I give my outlook for commodities and capital markets in 2020 and how the US-China trade war may catalyze a global financial crisis. https://t.co/qa1p2ePOU2
  • $GBPUSD edges lower after YouGov/Times poll results https://t.co/eT2rWkYh1P
  • RT @britainelects: UK #GE2019 MRP seat projection: CON: 339 (-20) LAB: 231 (+20) SNP: 41 (-2) LDEM: 15 (+2) PC: 4 (-) GRN: 1 (-) BREX: 0 (…
  • $GBP edging lower following this news https://t.co/TpnQXHyOZD
  • YouGov/Times Poll: Tories: 339 seats Labour: 231 seats $GBPUSD
  • Event risks for tomorrow include $NZD Half-Year Fiscal and Economic Update, USD CPI Index (YoY) (NOV), FOMC Rate Decision, and Chair Powell Post-FOMC Press Conference https://www.dailyfx.com/calendar?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr https://t.co/FbvOztBI49
  • Forex Update: As of 21:00, these are your best and worst performers based on the London trading schedule: 🇨🇭CHF: 0.36% 🇪🇺EUR: 0.27% 🇬🇧GBP: 0.08% 🇳🇿NZD: -0.06% 🇯🇵JPY: -0.17% 🇦🇺AUD: -0.18% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/zosLeDCLdi
USD/CHF Trades to Monthly Lows Post SNB

USD/CHF Trades to Monthly Lows Post SNB

2017-03-16 17:20:00
Walker England, Forex Trading Instructor

Talking Points:

The USD/CHF is trading to new monthly lows this afternoon, as the SNB (Swiss National Bank) has elected to keep their key interest rates unchanged at -0.75%. While this move by the SNB was widely anticipated, US Dollar pairs continue to selloff primarily due to ongoing reactions to yesterday’s US FOMC rate decision.

Technically the USD/CHF is again trending lower in the short term, and trading back below its 10 day EMA (exponential moving average) found at 1.0059. This move lower has concluded what now appears to be a price retracement from this year’s standing high at 1.0035. Currently, the USD/CHF is approaching its 200 day MVA (simple moving average) at .9944. If prices decline below this point, it could have significant implications for the pair’s long term trend. Alternatively if the USD/CHF remains supported above this value, traders may look for prices to rebound back towards the previous swing high at 1.0176.

USD/CHF, Daily Chart with Averages

USD/CHF Trades to Monthly Lows Post SNB

(Created Using IG Charts)

Current market sentiment for the USD/CHF remains at a positive extreme, with SSI reading at -2.01. This value suggests that over 66% of traders are currently net long the market. Typically when read as a contrarian value, negative extremes may suggest that prices may continue to trend lower. In the event of a bearish breakout beneath the previously mentioned 200 day SMA, traders should expect SSI to remain negative. Alternatively in the event that the USD/CHF finds support near present values, it would be expected to see SSI move back towards more neutral readings.

Want to learn more about trading with market sentiment? Get our Free guide here.

USD/CHF Trades to Monthly Lows Post SNB

--- Written by Walker, Analyst for DailyFX.com

To Receive Walkers’ analysis directly via email, please SIGN UP HERE

See Walker’s most recent articles at his Bio Page.

Contact and Follow Walker on Twitter @WEnglandFX.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.


News & Analysis at your fingertips.