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Home ANALYSIS

USDCHF pushes against topside target area

A.R Chowdhury by A.R Chowdhury
March 8, 2022
Reading Time: 8 mins read
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USDCHF pushes against topside target area

USDCHF

USDCHF near upper extreme

The USDCHF has been trading in an up and down trading range since the end of January. That range is from 0.9149 on the downside, to 0.92966 on the topside . The low extreme was last sniffed on Friday and Tuesday of last week. The upper extreme is being tested today.

The high price today has reached 0.92927 – just short of the high of the swing area at 0.92966. The current price is at 0.9287.

Helping the upside today was the holding of the 50% midpoint of the move down from the January 31 high. Holding above that today, gave the buyers the go-ahead to push higher.

Seller should look to lean against the topside resistance with stops on a break above. A move above would take the pair into the upper extreme area between 0.92966 and the Jan 31 high at 0.93425.

While the  USDCHF 
USD/CHF

The USD/CHF is the currency pair encompassing the dollar of the United States of America (symbol $, code USD), and the Swiss franc of Switzerland (code CHF). The pair’s exchange rate indicates how many Swiss francs are needed in order to purchase one US dollar. For example, when the USD/CHF is trading at 1.2500, it means 1 US dollar is equivalent to 1.25 Swiss francs. The US Dollar (USD) is the world’s most traded currency, whilst the Swiss franc (CHF) is the world’s sixth most traded currency, resulting in a very liquid pair, with tight spreads, often staying within the 0 pip to 2 pip spread range on most forex brokers. Even though the Swiss franc might not be as liquid as the euro or yen, the USD/CHF currency pair is still liquid enough to be known as the fourth major. Trading the USD/CHF has its advantages and disadvantages. The main advantage being, a lot of traders often prefer to invest in the Swiss franc when economic or political instability is lurking.This is due to Switzerland traditionally being known as a safe haven, as it generally remains neutral and silent on many major geopolitical events, for example it never participates in wars. These investments can trigger large swings for traders, who may capitalize on such moves. The main disadvantage is that the US dollar is the world’s reserve currency.Thus, traders also can flock to the USD, trying to ascertain which currency is more likely to be embarked upon can prove tough at times. USD/CHF Still Living in Shadows of 2015The USD/CHF otherwise is seen as one of the lesser volatile pairs, with a tendency to follow the Euro, hence the negative correlation between it and the EUR/USD.The currency pair will forever be tethered to the events of January 2015 with the Swiss National Bank (SNB) Crisis which roiled currency markets.In this instance, the SNB abruptly decided to abandon the Swiss franc (CHF) currency peg with the euro, convulsing markets.

The USD/CHF is the currency pair encompassing the dollar of the United States of America (symbol $, code USD), and the Swiss franc of Switzerland (code CHF). The pair’s exchange rate indicates how many Swiss francs are needed in order to purchase one US dollar. For example, when the USD/CHF is trading at 1.2500, it means 1 US dollar is equivalent to 1.25 Swiss francs. The US Dollar (USD) is the world’s most traded currency, whilst the Swiss franc (CHF) is the world’s sixth most traded currency, resulting in a very liquid pair, with tight spreads, often staying within the 0 pip to 2 pip spread range on most forex brokers. Even though the Swiss franc might not be as liquid as the euro or yen, the USD/CHF currency pair is still liquid enough to be known as the fourth major. Trading the USD/CHF has its advantages and disadvantages. The main advantage being, a lot of traders often prefer to invest in the Swiss franc when economic or political instability is lurking.This is due to Switzerland traditionally being known as a safe haven, as it generally remains neutral and silent on many major geopolitical events, for example it never participates in wars. These investments can trigger large swings for traders, who may capitalize on such moves. The main disadvantage is that the US dollar is the world’s reserve currency.Thus, traders also can flock to the USD, trying to ascertain which currency is more likely to be embarked upon can prove tough at times. USD/CHF Still Living in Shadows of 2015The USD/CHF otherwise is seen as one of the lesser volatile pairs, with a tendency to follow the Euro, hence the negative correlation between it and the EUR/USD.The currency pair will forever be tethered to the events of January 2015 with the Swiss National Bank (SNB) Crisis which roiled currency markets.In this instance, the SNB abruptly decided to abandon the Swiss franc (CHF) currency peg with the euro, convulsing markets.
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has been in an up and down range, the EURCHF has been more in a trend move lower as flow of funds has seen sellers of the EUR and buyers of the relative safety of the CHF on the back of the Russian invasion and other geopolitical tensions.

The price of the  EURCHF 
EUR/CHF

EUR/CHF is the currency pair encompassing the European Union’s single currency, the euro (symbol €, code EUR), and the Swiss franc of Switzerland (code CHF). The pair’s rate indicates how many Swiss francs are needed in order to purchase one euro. For example, when the EUR/CHF is trading at 1.1000, it means 1 euro is equivalent to 1.1 Swiss francs.  The euro (EUR) is the world’s second most traded currency, while the Swiss franc (CHF) is the world’s sixth most traded currency, resulting in a comparatively liquid trading pair. Swiss National Bank CrisisThe EUR/CHF is most commonly defined by the events of 15th of January, 2015 – the date on which the Swiss National Bank (SNB) decided to lift the cap imposed on the Swiss Franc from 2011.This was set to a maximum of just over 0.83 euros, meaning the EUR/CHF would not be allowed to fall below 1.2.  The reason why the cap was imposed in the first place was sparked by the Eurozone debt crisis.The Swiss government feared rising investment into their national currency was hampering its economy and exports, with the SNB explaining: “The minimum exchange rate was introduced during a period of exceptional overvaluation of the Swiss franc and an extremely high level of uncertainty on the financial markets. This exceptional and temporary measure protected the Swiss economy from serious harm.” At the start of 2015, the SNB decided their franc was in a much healthier environment, and not as overvalued as previously – resulting in the decision to abandon the euro peg, thereby sending the EUR/CHF smashing the 1.2 level.The crash caused immense losses to both traders and forex brokers, with lots of brokers going out of business.Perhaps the most high-profile casualties being Alpari UK, along with FXCM and its subsequent bailout. For those brokers that survived, they had to no choice but to cease trading on all CHF pairs. With the euro peg was in place, it was not uncommon for traders to use this to their advantage, buying EUR/CHF as price neared 1.2000 levels. Traditionally, EUR/CHF is seen as a decent candidate for scalping, due to its relatively predictable price action (SNB flash crash notwithstanding), and stable spread. Trading the EUR/CHF however does generally require more patience compared to other pairs, thanks to its lesser volatility.

EUR/CHF is the currency pair encompassing the European Union’s single currency, the euro (symbol €, code EUR), and the Swiss franc of Switzerland (code CHF). The pair’s rate indicates how many Swiss francs are needed in order to purchase one euro. For example, when the EUR/CHF is trading at 1.1000, it means 1 euro is equivalent to 1.1 Swiss francs.  The euro (EUR) is the world’s second most traded currency, while the Swiss franc (CHF) is the world’s sixth most traded currency, resulting in a comparatively liquid trading pair. Swiss National Bank CrisisThe EUR/CHF is most commonly defined by the events of 15th of January, 2015 – the date on which the Swiss National Bank (SNB) decided to lift the cap imposed on the Swiss Franc from 2011.This was set to a maximum of just over 0.83 euros, meaning the EUR/CHF would not be allowed to fall below 1.2.  The reason why the cap was imposed in the first place was sparked by the Eurozone debt crisis.The Swiss government feared rising investment into their national currency was hampering its economy and exports, with the SNB explaining: “The minimum exchange rate was introduced during a period of exceptional overvaluation of the Swiss franc and an extremely high level of uncertainty on the financial markets. This exceptional and temporary measure protected the Swiss economy from serious harm.” At the start of 2015, the SNB decided their franc was in a much healthier environment, and not as overvalued as previously – resulting in the decision to abandon the euro peg, thereby sending the EUR/CHF smashing the 1.2 level.The crash caused immense losses to both traders and forex brokers, with lots of brokers going out of business.Perhaps the most high-profile casualties being Alpari UK, along with FXCM and its subsequent bailout. For those brokers that survived, they had to no choice but to cease trading on all CHF pairs. With the euro peg was in place, it was not uncommon for traders to use this to their advantage, buying EUR/CHF as price neared 1.2000 levels. Traditionally, EUR/CHF is seen as a decent candidate for scalping, due to its relatively predictable price action (SNB flash crash notwithstanding), and stable spread. Trading the EUR/CHF however does generally require more patience compared to other pairs, thanks to its lesser volatility.
Read this Term
moved below the parity level yesterday on it’s way to a low of 0.9971. That took the price to the lowest level since January 2015. However, some trader concerns about Swiss National Bank intervention, sent the price back to the upside.

The price rise today was able to get above the 100 hour MA at 1.01119. The price has been trading above and below that MA over the last 4 or so hours as traders debate “is it time” to probe higher.

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The low off the recent high is trying to hold support near the swing high from yesterday at 1.0099. If the price in the short term can hold, there is more upside corrective probing room with the 200 hour MA up at 1.0209 as a possible target (green line).

EURCHF

EURCHF tests 100 hour MA

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A.R Chowdhury

A.R Chowdhury

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