USD/CHF: Critical Test of Risk Sentiment Emerging Short Term

Robert Petrucci

The Swiss Franc has resumed its bearish trend against the US Dollar and it is trading near important support levels this morning.

Since late July the USD/CHF has traded within a protracted range largely between 0.90500 and 0.92400. Yes, there have been occasional values spikes outside of this range, but in large measure, the USD/CHF has provided traders with this fairly consolidated range. In early trading this morning the USD/CHF is within a vicinity of 0.91450 and 0.91500.

Interestingly, support levels now being tested are values that were seen late in the third week of September. These marks were experienced before skittish trading caused a reversal higher towards the 0.929600 level on the 25th of September.

However, since touching the high water values the USD/CHF has provided a solid bearish trend.  What may entice speculators within this forex pair is the notion that if the Swiss Franc can sustain trading below the 0.91430 level it may indicate further downside action can develop promptly.

Trading within the USD/CHF is often consolidated because of the stature both currencies have in international finance.  The Swiss Franc however has experienced a solid bearish trend versus the US Dollar long term and this price momentum while causing skepticism among certain investors cannot be shrugged off easily. 

The USD/CHF is trading near long term low values.  The 0.90200 value which was touched in mid-August was a low watermark. The forex pair remains within an interesting dance as investors try to establish an equilibrium regarding their concerns for international finance and commerce. Economic implications are still shadowing the landscape of governments worldwide and the Swiss Franc continues to provide many financial institutions with a psychological security blanket as concerns remain unanswered regarding long-term outlooks and implications. The Swiss France is trading near historic values against the USD and this does not look like it has any reason to change.

While selling the USD/CHF near these support levels may seem like it risks suffering from a reversal higher, the long term trend should be part of the focus too for speculators.  The USD/CHF may continue to challenge support levels near term and its bearish momentum may prove worthwhile. Selling the USD/CHF within its current price vicinity of 0.91480 to 0.91550 and looking for downside action appears to be the logical decision.

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Swiss Franc Short Term Outlook:

Current Resistance: 0.91610

Current Support: 0.91430

High Target: 0.91710

Low Target: 0.91330

USD/CHF

Robert Petrucci
Robert Petrucci has worked in the Forex, commodity, and financial profession since 1993. Important aspects of his work involve risk analysis and advisory services. As an advisor in a Family Office he maintains a conservative approach for wealth management and investments. Robert also works in private finance with investors and companies delivering financial and management services.

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