Taking a look at the USDCHF Daily chart today.
Technically, we are in an interesting spot for the cross, having just crossed through parity (when currency crosses are equal - i.e. 1 US dollar = 1 Swiss Franc).
Currently, the pair is being supported by two bullish trendlines, one dating back to 2011 and the other (dashed line) dating back to Feb of 2018. Price is also being capped somewhat by the ascending trendline also seen, being caught between these two shorter-term trendlines is causing the price to get squeeze somewhat, a symptom of FX volatility (and market volatility in general) declining, with 1-Month Implied volatility at lows for the past 5 years.
Although the pair has approached the upper threshold of the ascending trendline and RSI was on the cusp of overbought territory there is a longstanding support & resistance level of 0.99719 (orange horizontal line) that dates back as far as November 2009 & July 2012.
The decline over the past few days for USDCHF can also be attributed to the decline in the US Dollar as noted from Dollar Index approaching March Lows.
Until market volatility picks up we can expect to see the price continue to get squeezed somewhat. If you're following this pair, then a close eye needs to be kept on the Dollar Index and the Euro, given the correlation between the Euro and the Swiss Franc.
USDCHF
Technically, we are in an interesting spot for the cross, having just crossed through parity (when currency crosses are equal - i.e. 1 US dollar = 1 Swiss Franc).
Currently, the pair is being supported by two bullish trendlines, one dating back to 2011 and the other (dashed line) dating back to Feb of 2018. Price is also being capped somewhat by the ascending trendline also seen, being caught between these two shorter-term trendlines is causing the price to get squeeze somewhat, a symptom of FX volatility (and market volatility in general) declining, with 1-Month Implied volatility at lows for the past 5 years.
Although the pair has approached the upper threshold of the ascending trendline and RSI was on the cusp of overbought territory there is a longstanding support & resistance level of 0.99719 (orange horizontal line) that dates back as far as November 2009 & July 2012.
The decline over the past few days for USDCHF can also be attributed to the decline in the US Dollar as noted from Dollar Index approaching March Lows.
Until market volatility picks up we can expect to see the price continue to get squeezed somewhat. If you're following this pair, then a close eye needs to be kept on the Dollar Index and the Euro, given the correlation between the Euro and the Swiss Franc.
USDCHF