Thanks to renewed concerns over a hard Brexit, the pound has continued to trade lower this late in Europe, boosting the Swiss franc on haven demand. The USD/CHF, EUR/CHF and GBP/CHF were all hovering near the day’s lows at the time of writing and more losses could be on the way for these franc pairs as we head towards year end.
In fact, the USD/CHF has been making lower lows and lower highs since that failed breakout attempt above parity at the end of November. Rates have since broken below the 200-day average, a bullish trend line and the last low prior to that failed rally at 0.9870. This level has turned into resistance and so long as we hold below it, the path of least resistance would be to the downside.
As such, I wouldn’t be surprised if rates continued lower to eventually take out 0.9660 – this year’s low that was formed in August.
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.