The Swiss Franc looks to be in the process of regaining its place as a safe haven currency. It wasn’t much more than one year ago when the SCB shocked the world, with the decision to let go of the 1.2 limit on the EUR/CHF pair. USD/CHF got back to the levels we saw before last year’s decision, but the pair has been falling again ever since. Now it’s below the 200-day MA and a break below the 0.965 level looks imminent. If the support falls, the next level to watch is the zone around 0.95.
Our assessment: USD/CHF is just hovering above an important support level. Traders will focus on 0.965 today, as the ADP Private Sector Employment report comes out in the afternoon.
