USD/CHF (current price: 0.9850)
The Swiss Franc has been trading sideways compared to the U.S. Dollar for two weeks now, as the pair lost its upward momentum, which persisted since the Brexit vote. USD/CHF hit strong short-term resistance near 0.99, as it got slightly above the 200-day MA , which is found right at the current rate of 0.985. The Swiss Trade Balance continued to improve this month, as the relatively weak Franc and the slowing internal demand pushed the gap between Imports and Exports higher.
Our assessment: USD/CHF rebounded from around 0.99 for the third time in two weeks yesterday, and the move might continue, especially if global stock markets fall further after Thursday’s correction.
