USD/CHF rises to a high of 0.9676
The Swiss franc is now the weakest performing major currency on the day and USD/CHF has now risen to near 3-day highs on the back of the franc’s weakness in the last two hours of trading. There isn’t much of a catalyst for the move but if anything it could be some positioning ahead of the SNB meeting tomorrow I reckon.
With the franc being the best performing major currency so far in 2H 2018, it is setting up for possible verbal intervention by the SNB to derail the franc’s rise before it starts to eat into the Swiss economic recovery story.
As for USD/CHF, price has now moved back above the 100-hour MA (red line) and is eyeing a test of the 200-hour MA (blue line) @ 0.9683. Break above that and the near-term bias in the pair turns more bullish.
After that, the next key level to eye for will be the 200-day MA @ 0.9738 for buyers. If they are able to find a way past that, it will put an end to the bearish momentum in the pair. Though sellers will be poised to defend that level as they have done so twice already since breaking below it:
In any case, the risk now for the swissie will be for any forms of intervention by the SNB tomorrow. That will dictate trading sentiment in the currency moving forward.