USD/CHF consolidates in a narrowing triangle ahead of important events

The USD/CHF is trading within a narrowing channel as seen on the hourly chart.
The Swiss franc has returned to its role as a safe haven currency but not a major one.
Top-tier US releases later in the week are set to determine the next moves.

Yohay Elam FXStreet

The USD/CHF is trading around 0.9385, balanced on the day. The pair traded in a narrow range, confined between 0.9363 and 0.9406. Steady trading is also seen in other currency pairs.

Despite the steady trading, the chart below shows a narrowing triangle. The pair has marked lower highs and higher lows in its narrowing range. The consolidation in this pattern implies a significant breakout when the pair moves out of the wedge.

Resistance awaits at 09410, which marks the top of the downtrend resistance line. Further resistance is at the swing high of 0.9470.

Support awaits at the bottom of the uptrend support, at 09348. Further support is at 0.9308 seen last week.

USD/CHF returns to its safe haven role

Markets are calmer and are rising gradually after a week of sell-offs. The positive close on Friday extended into a quiet trading day on Monday. The economic calendar is quite sparse on Monday, but markets are already eying the US inflation report on Wednesday.

A rise in US inflation is likely to push stocks lower on expectations for the Fed to raise rates at a quicker pace. The US dollar is set to rise in this scenario against most currencies, with the exception of the yen and to a lesser extent, the Swiss franc. Lower inflation may send stocks higher and the franc lower. See the full preview here.

The franc was a top-tier safe-haven currency in 2011 until the Swiss National Bank intervened in September of that year to peg the currency to the euro, a peg that continued through January 2015. Recent market jitters have triggered the same behavior from the currency.

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

EUR/USD climbs to daily highs near 1.1820

EUR/USD now picks up pace and advances to the area of daily peaks north of the 1.1800 barrier at the end of the week. The pair’s decent move higher comes against the backdrop of a generalised lack of direction in the FX galaxy and the mild offered stance in the US Dollar.

GBP/USD trims losses, retests 1.3460

After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.

Gold flirts with four-week highs past $5,200

Gold extends its rebound, climbing for a third consecutive session and pushing back above the $5,200 mark per troy ounce on Friday. The move higher continues to draw support from lingering geopolitical tensions and the ongoing uncertainty surrounding US trade policy, both of which are keeping safe-haven demand firmly in play.

Bitcoin, Ethereum and Ripple consolidate with short-term cautious bullish bias

Bitcoin, Ethereum and Ripple are consolidating near key technical areas on Friday, showing mild signs of stabilization after recent volatility. BTC holds above $67,000 despite mild losses so far this week, while ETH hovers around $2,000 after a rejection near its upper consolidation boundary.

Changing the game: International implications of recent tariff developments

The Supreme Court ruling on International Emergency Economic Powers Act (IEEPA) tariffs provides limited relief for the rest of the world, with weighted average tariff rates modestly lower.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.