USD/CHF: Haven demand boosts franc amid renewed Brexit uncertainty
|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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.