Your Forecast Is Headed to Your Inbox
But don’t just read our analysis – put it to the rest. Your forecast comes with a free demo account from our provider, IG, so you can try out trading with zero risk.
Your demo is preloaded with £10,000 virtual funds, which you can use to trade over 10,000 live global markets.
We’ll email you login details shortly.
You can manage your subscriptions by following the link in the footer of each email you will receive
An error occurred submitting your form.
Please try again later.
Swiss Franc price, news and analysis:
- The Swiss Franc has been one of the weakest of the major currencies over the past month.
- However, the USDCHF pair is now not far below the highs reached in late December 2016 and early January 2017, suggesting its climb will likely falter soon.
USDCHF upside now limited
The Swiss Franc has weakened significantly over the past month as a lack of volatility in the markets has reduced demand for safe havens. That has boosted USDCHF to its firmest levels since late December 2016 and early January 2017.
However, the price is now approaching the highs reached back then, suggesting that any further gains could be limited. As the weekly chart below shows, USDCHF reached a peak of 1.0344 – not far from the current 1.0215 – and that level will be very hard for the pair to break through.
USDCHF Price Chart, Weekly Timeframe (October 12, 2015 – April 23, 2019)
Chart by IG (You can click on it for a larger image)
The price is also heading towards overbought levels, with the 14-week relative strength index at the bottom of the chart approaching the 70 mark. Moreover, there is little support before the 1.00 “round number” and the 20-week moving average just below it, suggesting that any correction could be quite steep.
Currently, IG client sentiment data show that retail traders net-short USDCHF outnumber those net-long by some four to one. At DailyFX we tend to take a contrarian view of crowd sentiment and that implies the price could rise further. However, those traders are currently less net-short than they were, suggesting that a peak for the pair could be close.
Resources to help you trade the forex markets:
Whether you are a new or an experienced trader, at DailyFX we have many resources to help you:
- Analytical and educational webinars hosted several times per day,
- Trading guides to help you improve your trading performance,
- A guide specifically for those who are new to forex,
- And you can learn how to trade like an expert by reading our guide to the Traits of Successful Traders.
— Written by Martin Essex, Analyst and Editor