USDCHF was already in a rout, but the sell-off today has been turbo-charged by the ongoing rout in risky assets, the renewed sell-off in USDJPY today and widely circulated rumours that the SNB will not do anything at next Thursday’s SNB meeting, where expectations were otherwise beginning to build (I am always cynical about rumours – just reporting the noise, not whether it is accurate!). USDCHF is likely to follow EURCHF and USDJPY directionally in the days ahead.
Chart: USDCHF
Note the rising trend-line support and the importance of the two flat-line support areas around 0.9200 and just above 0.9000. The last couple of days have shown the tactical importance of the 200-day moving average. Momentum for now favours that 0.9000 test unless the SNB falsifies the latest rumor and/or risk assets are bid again.
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