Swiss franc as safe haven

USD/CHF is falling on fears of a second Covid-19 wave.

New Highs 2

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


More from FX

From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.