USD/CHF Price Forecast: 100-day SMA tested as US Dollar tanks
The USD/CHF tumbles nearly 2% on Wednesday as a US Treasury announcement of a buyback sent the Greenback into a tailspin, as US Treasury yields also dive. The pair trades at 0.7979 after reaching a high of 0.8128.
The US Dollar experienced a significant decline against the Swiss Franc on Wednesday, with the pair falling nearly 2% to 0.7979 from a high of 0.8128. This downturn occurred following the US Treasury's announcement of a buyback of longer-dated nominal coupon securities, causing a drop in US Treasury yields. Technical analysis indicates that the USD/CHF is currently testing the 100-day Simple Moving Average (SMA) at 0.7975, which it must surpass to continue its bearish trend.
Traders will be watching for the pair to clear the 100-day SMA and then the 200-day SMA at 0.7932 before further downside is expected. On the upside, buyers must first reclaim the 0.8000 level before targeting the March 31 high of 0.8042. The Swiss Franc, Switzerland's official currency, is a top ten traded currency globally and often serves as a safe-haven asset during market stress due to Switzerland's stable economy and strong export sector.
The Swiss National Bank (SNB) is responsible for setting monetary policy, aiming for an annual inflation rate below 2%. With Switzerland heavily reliant on the health of Eurozone economies, any negative economic developments in the region could impact the value of the Swiss Franc.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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