USD/CHF: Dollar bulls take profits after erasing most of the week’s gains


  • USD/CHF loses most of its weekly gains in the last 24 hours.
  • The 100-period SMA on the 4-hour chart is providing support.

The USD/CHF is currently trading down 0.7% at about 0.9360 since it retraced sharply lower from yesterday’s highs seen at 0.9492 losing 140 pips in the last 24 hours.

The Swissy has gained more than 160 pips over the course of the week from 0.9327 to 0.9490. The drive behind the move up being the Fed chairman Powell’s testifying in front of the Congress. In the first part of the hearing Powell’s comment where very optimistic about the economy and wage growth and saw no hindrance for rate hikes. 

In the second part of the hearing on Thursday he was more cautious with his wording, saying: “we don’t see any strong evidence yet of a decisive move up in wages”. He also went further by saying that he did not see a tightening in labor market causing wages to hit “a point of acceleration”. He also commented on the recent move made by Trump on tariffs saying: “…the tariff’s approach is not the best approach, the best approach is to deal directly with the people who are directly affected…”. 

Technically the USD/CHF is consolidating at the 0.9360 level sitting at the 100-period simple moving average on the 4-hour chart and less than 20 pips away from the 50% Fibonacci retracement from the February 16 to March 1 move up. A break below this level can lead to the 61.8% Fibonacci retracement at 0.9300. Further down 0.92540 should provide some support as it is the 78.6% Fibonacci retracement from the February 16 to March 1 move up. To the upside 0.9420 with the 23.6% Fibonacci retracement level along with the 200-simple moving average nearby should provide resistance. The next key resistance being the high made of Thursday at 0.9492.

USD/CHF 4hour chart

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.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

GBP/USD tumbles from the highest since 2018 on the Brexit impasse

The GBP/USD roller coaster continues with a downfall below 1.35 after the pair hit a 31-month high of 1.3539 earlier. Brexit talks have yet to yield an agreement. Negotiations are set to continue through the weekend.

GBP/USD News

EUR/USD battles 1.2150 after disappointing NFP

EUR/USD is trading off the 32-month highs amid bumps in US stimulus and vaccine distribution. Markets await the all-important US Nonfarm Payrolls missed expectations with 245K jobs gained in November. 

EUR/USD News

XAU/USD fails to break $1850 and turns to the downside

Gold peaked after the beginning of the American session at $1848/oz reaching the highest level since November 23 and then turned to the downside. It bottomed at $1829 and is it about to end the week hovering around $1830.

Gold news

Dollar downfall explained and what's next for markets

The safe-haven US dollar is hitting multi-month and multi-year lows against its peers while stocks are on fire. What is behind the risk-on rally? Valeria Bednarik, Joseph Trevisani, and Yohay Elam discuss markets' moving parts as 2020 nears its end.

Read more

Extra week of Black Friday!

Learn to trade with the best! Don't miss the most experienced traders and speakers in FXStreet Premium webinars. Also if you are a Premium member you can get real-time FXS Signals and receive daily market analysis with the best forex insights!

More info

Forex MAJORS

Cryptocurrencies

Signatures