Weak U.S. data and easing tensions in Europe recently fueled USD/CHF’s February downswing.
Thinking of jumping in?
We’re looking at the .9000 major psychological handle as a potential area of interest!
USD/CHF 4-hour Forex Chart by TradingView
We’ve seen falling 10-year Treasury yields and some weaker-than-expected U.S. data, which are fueling worries about U.S. and global growth. That’s got folks thinking the Fed might have to cut rates faster than it’s been letting on.
Meanwhile, the Swiss franc’s getting some love as some traders shy away from the dollar. With geopolitical tensions easing after Germany’s recent elections, there’s even more reason for the franc to shine.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the U.S. dollar and Swiss franc, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
USD/CHF, which DID pull back from the resistance zone we highlighted a few days ago, recently found support from around the .8900 area.
The pair is now hovering just below the .9000 psychological level, which lines up with mid-channel resistance on the 4-hour chart. Interestingly, .9000 is also close to the 100 SMA and the R1 (.9025) Pivot Point line.
Traders who believe that the bearish SMA crossover earlier this month would lead to new 2025 lows for USD/CHF can eye .9000 as a potential trend entry opportunity. If the pair can’t push higher and bearish momentum kicks in, we might see a drop back to .8900—or even down to .8500 if sellers really step up.
Of course, the bulls might just be waiting for their moment.
Keep an eye out for big green candles and steady trading above .9000, which could put .9150 back on the radar.
As always, watch out for other top-tier catalysts that could impact overall market sentiment, and make sure you practice proper position sizing when taking any trades!
