USD/CHF (current price: 0.9835)
The Swiss Franc lost ground against the U.S Dollar in the last couple of weeks, as the Swiss Central Bank continued to buy foreign assets in an effort to weaken the currency, while the FED hinted on a possible interest rate hike in the coming months. The pair is getting close to parity once again, after falling back to the lower end of its long-term trading range near 0.95 in August. The cross remains neutral as it recently exited a broad declining trend channel that dominated it throughout the year.
Our assessment: USD/CHF rose above the 200-day MA on Tuesday and the pair could be headed to parity, especially if Friday’s NFP number surprises on the upside, with strong resistance at the current rate near 0.9850.
