USD/CHF Rebounds from Multi-Year Low
As the charts show, the USD/CHF exchange rate fell below 0.810 US dollars per franc earlier this week. The pair had not traded this low since the 2008 financial crisis. Demand for the Swiss franc as a safe-haven currency was driven by concerns over the escalation of the trade war between the United States and other major economies.
However, the USD/CHF pair has since rebounded and is currently trading above 0.825. This recovery was supported by yesterdays statement from Finance Minister Bessent at the JPMorgan Private Investors Conference, where he expressed optimism about imminent de-escalation in trade tensions with China.
Technical Analysis of the USD/CHF Chart
The chart indicates that the trend remains bearish, highlighted by the descending channel marked in red. A bullish attempt to push the price into the upper half of the channel earlier this morning (as shown by the arrow) failed to produce any significant momentum.
The price is fluctuating around the median line, a level where supply and demand tend to balance. It is possible that the market has already priced in the positive news from yesterday, and the bears may attempt to reassert pressure, driving the price back towards the 0.810 support level.
Nevertheless, much will depend on the fundamental backdrop. A stronger dollar could follow in response to possible developments such as:
a statement from China signalling readiness to de-escalate its tariff policy;
signs of progress in trade deals between the United States and key partners such as Japan, South Korea, and India.
Read more: https://fxopen.com/blog/en/oa-usd-chf-rebounds-from-multi-year-low/
Text source: Forex Trading Blog
