USD/CHF extends its falls amid USD weakness, calmer markets

  • The USD/CHF is trading on lower ground, sliding for the second day on US dollar weakness, lower stock volatility
  • The pair is waiting for the US inflation report and also a speech by SNB member Fritz Zurbrugg.
  • The technical picture is bearish

The USD/CHF is trading lower on the day, extending the losses from yesterday and consolidating on lower ground. The pair is just around 0.9350, bouncing from the lows of 0.9322 but still nearly 50 pips down on the day.

The moves on the USD/CHF reflect the weakness of the US dollar against most currencies. US stock markets are moving slowly to the upside in a day of low volatility and low trading volume. During the downfall of shares last week, the Swiss franc had a temporary rose as a safe haven currency, but this role did not last for too long.

Markets are awaiting the US inflation and retail sales reports on Wednesday at 13:30 GMT. US Core CPI is the primary release, and it is expected to remain unchanged at 1.8% y/y. See the full preview here. Other inflation data and the retail sales figures are also of high interest.

The SNB Governing Board Member Fritz Zurbrugg will also speak on Wednesday, at 8:50 and at 11:20 GMT. 

USD/CHF Technical Analysis

The technical picture remains bearish. The 50-day Simple Moving Average has crossed the 200-day SMA in early February. The RSI is below the balanced level of 50 point level but above 30, not in oversold territory. Momentum points to the downside. 

Support awaits at 0.9322 seen earlier in the day. A further cushion awaits at 0.9250 recorded beforehand. 

Resistance stands at 0.9470 that was the high point of the recent recovery. Further resistance is at 0.9535,  a swing low in January.

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