News & Analysis at your fingertips.

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.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Bearish
Oil - US Crude
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
Mixed
Gold
Bullish
GBP/USD
Mixed
USD/JPY
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • AUD/USD price action attempts to advance but struggles to maintain a bid more broadly. Get your $AUDUSD market update from @RichDvorakFX here: https://t.co/6zZz0cP2os https://t.co/WU5Hc2Jos2
  • 🇰🇷 Consumer Confidence (OCT) Actual: 91.6 Previous: 79.4 https://www.dailyfx.com/economic-calendar#2020-10-27
  • Forex Update: As of 20:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.44% 🇯🇵JPY: 0.40% 🇨🇦CAD: 0.20% 🇦🇺AUD: 0.08% 🇨🇭CHF: -0.10% 🇪🇺EUR: -0.12% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/GTC0ZxZF92
  • Heads Up:🇰🇷 Consumer Confidence (OCT) due at 21:00 GMT (15min) Previous: 79.4 https://www.dailyfx.com/economic-calendar#2020-10-27
  • Commodities Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Silver: 0.59% Gold: 0.26% Oil - US Crude: -1.13% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/XIGKv3ba3L
  • We've gotten here: as of today, it is one week until the #PresidentialElection2020. BUT the situation is incredibly fluid with Covid-19. With this in mind, do you think the election process itself - distribution, counting, etc - will be prolonged?
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.81%, while traders in EUR/USD are at opposite extremes with 70.08%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/rFFh3X4MVR
  • Are #stocks readying for a major turn? It’s still too early to say, and the S&P 500 is grasping on to a bullish continuation pattern that remains. Get your S&P500 technical analysis from @JStanleyFX here:https://t.co/Ipm3PAzX1B https://t.co/RW6rnseGTf
  • Microsoft Earnings: Revenue: $37.15B vs $35.75B exp EPS: $1.82 vs $1.55 est $MSFT shares creep just 0.3% higher in after-hours trading
  • Indices Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Wall Street: 0.04% US 500: 0.03% FTSE 100: -0.26% Germany 30: -0.46% France 40: -0.64% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/BB0qWcl7fS
USD/CHF Price Outlook: Swiss Franc Falls Sharply Ahead of SNB

USD/CHF Price Outlook: Swiss Franc Falls Sharply Ahead of SNB

2020-09-23 20:40:00
Rich Dvorak, Analyst
Share:

USD/CHF PRICE ACTION ADVANCING OFF MULTI-YEAR LOWS AS SWISS FRANC SURRENDERS GAINS AHEAD OF SEPTEMBER SNB POLICY REVIEW

  • USD/CHF price has exploded over 200-pips so far this month as the US Dollar pivots higher
  • Swiss Franc falling sharply after hitting its strongest level against the USD in over five years
  • The SNB monetary policy update on tap has potential to amplify the rebound by USD/CHF

USD/CHF price action is ‘rising from the dead’ with the US Dollar ripping higher as markets swoon. A resurgence of volatility and risk aversion over recent trading sessions largely underpins broader US Dollar strength across major FX peers, such as the Swiss Franc.

Introduction to Forex News Trading
Introduction to Forex News Trading
Recommended by Rich Dvorak
Introduction to Forex News Trading
Get My Guide

The 225-pip rebound staged by spot USD/CHF so far this month might be voiced as a welcomed development by Swiss National Bank officials, who are due to release their latest monetary policy review on Thursday, 24 September at 07:30 GMT.

USD/CHF PRICE CHART: WEEKLY TIME FRAME (AUG 2018 TO SEP 2020)

USD CHF Price Chart USDCHF Technical Outlook

This is considering a relatively weaker Swiss Franc stands to alleviate some pressure on the central bank to act forcefully with currency intervention aimed at stemming the sharp slide by USD/CHF since late last year. As such, it is likely that the SNB stands pat on policy and leaves its target interest rate unchanged at -0.75%.

Traits of Successful Traders
Traits of Successful Traders
Recommended by Rich Dvorak
Traits of Successful Traders
Get My Guide

The Swiss Franc could potentially fall further with USD/CHF advancing as the broader US Dollar extends its rally on the back of disconcerting global PMI data. Technical analysis also points to the possibility of USD/CHF price action prolonging its rebound off its lowest level since 2015 when the SNB de-pegged the Swiss Franc. An impending Bollinger Band squeeze suggests spot USD/CHF prices could consolidate back higher.

USD/CHF PRICE CHART: DAILY TIME FRAME (14 MAR TO 23 SEP 2020)

USDCHF Price Chart USD to CHF Swiss Franc Outlook

Also, recent US Dollar strength against the Swiss Franc has propelled USD/CHF comfortably above its 50-day moving average. This appears to have invalidated its prior-standing bearish trend highlighted by the series of lower highs recorded over recent months. Eclipsing the 23.6% Fibonacci retracement level of its year-to-date trading range opens up the door for USD/CHF to potentially stretch toward the 100-day moving average with the 0.9200-price level posing as possible technical support.

USD/CHF MIXED
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily -3% 8% -1%
Weekly 5% -3% 4%
What does it mean for price action?
Get My Guide

-- Written by Rich Dvorak, Analyst for DailyFX.com

Connect with @RichDvorakFX on Twitter for real-time market insight

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

DISCLOSURES