USD/CHF reverses sharply from 1.0000 and tumbles toward 0.9900

Swiss franc soars on Monday amid risk aversion, gains particularly versus US dollar.
USD/CHF suffers the worst slide in three months, losing more than 75 pips.

Matías Salord FXStreet

The USD/CHF pair reversed dramatically after posting on Friday the highest daily close since June. Last week it traded above the parity level and today tumbled to 0.9911, the lowest since November 21.

The return of the safe-havens

The move lower in USD/CHF took place amid increasing demand for safe-haven assets. The Swiss franc was the top performer among currencies. The initial optimism across markets driven by positive data from China and the Eurozone, changed after the announcement of US President Trump regarding tariffs and following US manufacturing data.

“US President is restoring tariffs on imports of steel and aluminum from Brazil and Argentina following accusations of intentionally devaluing their currencies to the detriment of US farmers. On the other hand, U.S. Commerce Secretary Wilbur Ross renewed the threat of higher tariffs on Chinese imports. Separately, China’s first retaliation to the U.S. bill supporting pro-democracy movements in Hong Kong was not related to trade, but officials said China would take further necessary actions without signaling what they might be”, explained BBVA analysts.

The combination of a weaker greenback across the board and a stronger Swiss Franc pushed USD/CHF sharply lower. The pair form support above 0.9900. It dropped back under the 20-day moving average (0.9940) toward 0.9900. The next support below 0.9900 might be seen at 0.9865 (mid-November low) and then comes the critical barrier around 0.9840 (mid-September & October low).

More levels

USD/CHF

Overview
Today last price	0.9918
Today Daily Change	-0.0082
Today Daily Change %	-0.82
Today daily open	1

Trends
Daily SMA20	0.9936
Daily SMA50	0.993
Daily SMA100	0.9888
Daily SMA200	0.9948

Levels
Previous Daily High	1.0024
Previous Daily Low	0.9979
Previous Weekly High	1.0024
Previous Weekly Low	0.9954
Previous Monthly High	1.0024
Previous Monthly Low	0.985
Daily Fibonacci 38.2%	1.0007
Daily Fibonacci 61.8%	0.9996
Daily Pivot Point S1	0.9978
Daily Pivot Point S2	0.9956
Daily Pivot Point S3	0.9933
Daily Pivot Point R1	1.0023
Daily Pivot Point R2	1.0046
Daily Pivot Point R3	1.0068

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

EUR/USD looks weak below 1.1800

EUR/USD has slipped back under pressure, breaking through the 1.1800 support and drifting towards the weekly lows near 1.1770 ahead of the opening bell in Asia. The move reflects renewed strength in the US Dollar, with steady geopolitical tensions keeping its demand firm. Moving forward, the release of the German labour market report and flash inflation figures should keep European investors entertained on Friday.

GBP/USD threatens the 200-day SMA near 1.3440

GBP/USD rapidly leaves behind Wednesday’s strong advance, coming under heavy pressure and retesting the 1.3440 zone, where the critical 200-day SMA is located. Cable’s deep pullback follows the strong gains in the Greenback, while investors continue to pencil in a potential BoE rate cut in March.

Gold remains below $5,200 despite tariff jitters and geopolitical risks

Gold is seen consolidating in a range below the $5,200 mark during the Asian session on Friday amid mixed cues. Trade jitters, along with the risk of a potential US-Iran war, act as a tailwind for the safe-haven bullion. Meanwhile, the Fed's hawkish outlook keeps the US Dollar close to the monthly high and caps the non-yielding yellow metal. Nevertheless, the commodity remains on track to register gains for the fourth straight week, though the fundamental backdrop warrants some caution for bullish traders.