USD/CHF: back to the upside

USD/CHF: back to the upside

2021-03-22 • Updated

The background

Since the last global economic crisis, the USD has been trading against CHF at approximately equal value. USD/CHF rarely dropped more than 10% and was quick to recover the losses to the same level of 1.00 all along the last several years. 

However, March 2020 changed the layout. USD/CHF experienced a very heavy blow of fluctuation and started going down: by the end of 2020, it was above 0.88.

Eventually, in December 2020, Donald Trump labeled Switzerland a "currency manipulator". The statement was then revoked by other US officials but the Swiss National Bank took measures to stop the appreciation of the Swiss franc. 

Currently, one US dollar is worth approximately 0.92 Swiss francs.

The outlook

During its last press conference, the SNB advised that the interest rate will be kept steady at -0.75 where it is now at least through 2022. By then, if the inflation and economic dynamics are at the expected level of full recovery, the monetary stance may be adapted to the new economic environment.

Until then, however, we may take it that the monetary course of SNB will keep the same direction. Therefore, we may expect that the SNB will try to move the Swiss franc to pre-virus levels - meaning, closer to 1.00 for USD/CHF.

Therefore, in the coming months, we may see a further bullish push in USD/CHF - until the current enter the stabilization zone 1.00-0.97.

Action plan

  • Use high timeframes
  • Watch for bullish chart formations
  • Unless reversals occur, USD/CHF is likely to keep gaining value until it reaches 1.00-0.97
  • As long as the payout stays the same, it's a long-term buy opportunity for position-trading bulls 

USDCHFWeekly.png

                                                                                           LOG IN

Similar

Trade Ideas on September  6-10
Trade Ideas on September 6-10

Bitcoin At the end of the past week, Bitcoin broke through the big resistance level of $50 400 and reached $51 500 after the worse-than-expected US labor data…

Latest news

September 20-25 Trade Ideas
September 20-25 Trade Ideas

US stock market corrects, gold recovers and the crypto market drops hard! Best trade opportunities during this week in the article! Let’s check the charts and set some goals! NASDAQ (US100) US100 index plunges as the US dollar strengthens…

GBP/USD Is Ready for Reverse Up
GBP/USD Is Ready for Reverse Up

GBP/USD is moving inside the ascending channel. Since it’s in the lower part of this channel, the pair should reverse up and continue moving in zig-zag.

Deposit with your local payment systems

Be on top of your game

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera