The Swiss franc regained traction and strengthened on Thursday after corrective action from 0.9612 (16 Jan low, the lowest since Sep 2018) was strongly rejected on Wednesday at 0.9728 (falling daily Kijun-sen) that faded hopes in the market about SNB's intervention. The Swiss central bank's chairman Jordan said that the franc is highly valued and that the central bank has right to intervene and prevent the currency to become too strong and steer monetary conditions, but not to manipulate and get an advantage over the other currencies after the US put Switzerland in the list of currency manipulators. Studies on daily chart continue to work in favor of further pair's weakness, as MA's remain in full bearish setup and Wednesday's spike was short-lived and failed to close above initial barrier at 0.9678 (10DMA). Bearish momentum continues to strengthen and RSI and stochastic indicators are heading south. Long upper shadow on Wednesday's bearish daily candle, marks strong upside rejection and weighs on near-term action. Fresh weakness off 0.9728 high has already retraced 50% of 0.9612/0.9728 recovery leg and pressure pivotal supports at 0.9655 (Fibo 61.8% / base of 4-hr cloud) with break here to confirm an end of corrective phase and shift near-term focus lower. However, markets remain cautious of possible SNB's intervention, as the central bank may take an action and weaken overvalued franc.

Res: 0.9700; 0.9728; 0.9769; 0.9800
Sup: 0.9668; 0.9657; 0.9640; 0.9612


The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD trades above 34-month lows after US retail sales miss

EUR/USD is trading around 1.0850, above the lowest since April 2017. The US Control Group disappointed by staying flat in January. Consumer sentiment beat expectations. Germany reported a 0% growth in Q4 2019. 


GBP/USD ticks down after reshuffle-related rally

GBP/USD is trading closer to 1.30, consolidating its gains after UK PM Johnson nominated Sunak as Chancellor instead of Javid, potentially directing fiscal stimulus. Brexit concerns and coronavirus developments are in play.


US retail sales modestly higher in January, soft in the details

Consumers kept to their habits boosting purchases last month but the holiday season was slower than its initial reading giving the New Year a soft beginning.

Read more

WTI climbs to fresh two-week highs above $52

The barrel of West Texas Intermediate (WTI) fell below the $51 handle on Thursday but recovered a large portion of its losses to close the day at $51.50 on easing concerns over the impact of the coronavirus outbreak on the global energy demand. 

Oil News

FXStreet launches Real-Time Trading Signals

FXStreet Signals offers access to explanatory live webinars, real-time notifications when signals are triggered and exclusive membership to the company’s Telegram group, where users get direct guidance by our analysts and get room to discuss and interact.

More info

Forex Majors