USD/CHF is up for 12 straight weeks: how high can it go?

October 04, 2023 06:55 AM PDT | By Invezz
 USD/CHF is up for 12 straight weeks: how high can it go?
Image source: Invezz

The USD/CHF exchange rate has risen in the past 12 straight weeks as the US dollar index (DXY) continued soaring. The pair jumped to a high of 0.9240, the highest point since March 20th. It has jumped by more than 7% from the lowest level this year.

US dollar index rally continues

The USD/CHF pair continued soaring as the US dollar index (DXY) continued soaring. The DXY index, which tracks the greenback against a basket of currencies, has also risen in the past 12 weeks and is sitting at its highest point since November 2022.

The US dollar rally gained steam as investors embraced a risk-off sentiment in the market. This happened as the number of risks in the market continues. For example, there are elevated risks of a government shutdown after the House of Representatives ousted Speaker Kevin McCarthy.

There are also risks in the bond market, where the 30-year Treasury yield soared to 5.0% for the first time in more than a decade. The 10-year yield jumped to 4.7% as the bond sell-off gained momentum. As I wrote here, billionaire Jeff Gundlach of DoubleLine Capital warned of risks of a recession.

The next important catalyst for the USD/CHF exchange rate will be the upcoming US non-farm payrolls (NFP) data. Economists polled by Reuters expect the data to show that the NFP dropped from 187k in August to 163k in September.

The unemployment rate is expected to come in at 3.7% while the average hourly earnings rose by 4.3%. A report by ADP on Wednesday showed that the private sector added just 89k jobs in September, the smallest increase in years.

The Federal Reserve and the Swiss National Bank (SNB) will not meet this month. The Fed will meet on November 1 while the SNB will meet on December 14th.

USD/CHF technical analysis

USD/CHF

USD/CHF chart by TradingView

The daily chart shows that the USD/CHF exchange rate has been in a strong bullish trend in the past few months. The pair has jumped above the 38.2% Fibonacci Retracement level. It has risen above the 200-day and 50-day moving averages. The MACD has moved above the neutral point and is nearing at 0.01.

Therefore, the pair will likely continue rising as buyers target the 50% retracement level at 0.9330. The stop-loss of this trade will be at 0.900.

The post USD/CHF is up for 12 straight weeks: how high can it go? appeared first on Invezz


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media LLC (Kalkine Media, we or us) and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures/music displayed/used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it, as necessary.


Sponsored Articles


Investing Ideas

Previous Next