Swiss franc as safe haven
Christophe Chevalier July 29, 2020 6:49 AM
USD/CHF is falling on fears of a second Covid-19 wave.
The Swiss franc is still considered as a safe haven, such as the Japanese yen, and is climbing as fear of a second Covid-19 wave would strongly impact the economic growth. USD/CHF is therefore falling and has touched its lowest level since June 2015.
From a technical point of view, on a daily chart, USD/CHF remains on the downside and is capped by its declining 50-period moving average (in blue). Readers may therefore consider the potential for further weakness below resistance at 0.9355. The nearest threshold would be set at horizontal support at 0.9040 and a second one would be set at 0.8940 in extension.
Source: TradingView, GAIN Capital
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.