USD/CHF: close to long-term lows
For the past 6 trading days USD/CHF has been consolidating in the 0.8910/8850 area. The pair’s trading not far from the minimal level since 2011. Swiss franc remains strong due to its appeal as a safe haven amid the fears of a Ukrainian civil war, same troubles in Venezuela, and a sudden weakening of Chinese yuan. On its part, US dollar didn’t provide reasons for the pair to rise: the recent economic data in America has been soft.
Analysts at SEB Bank point out that the move down from January high may be a 3-wave downside correction. However, FBS argues that as long as resistance at 0.8915 holds, near term downside risk remains for another test of support in the $0.8830 area. Support at 0.8800 looks firm and will likely hold. If USD/CHF rises above 0.8915, it will be a sign of the temporary low and, probably, a turnaround. Next resistance levels are at 0.8945/50 and 0.8965/70.
Chart. H4 USD/CHF