USD/CHF (current price: 0.9587)
The pair got lower on every day of the week so far, as we expected, in the aftermath of the bearish U.S. non-farm payrolls reading and the favorable outcome on Sunday’s referendum in Switzerland that we mentioned in our Monday report. USD/CHF couldn’t reach parity in the previous weeks and now the pair is back to its long-term declining trend channel, with a good chance for a test of the lows below 0.95. The cross will likely remain under pressure until next week’s FED decision.
Our assessment: USD/CHF has lost 400 pips since hitting a high above the 200-day MA two weeks ago with strong support looming just below the current rate at 0.9525, and around 0.9475.
