The dollar to Swiss franc exchange rate has recently shown a lack of direction. The USD/CHF exchange rate fluctuates around the parity, remaining above and below 1.0000 every now and then. During today’s session, the dollar loses 0.26% to the Swiss franc. What to expect in the next few hours?
The technical situation on a high time interval
Looking at the dollar to Franc exchange rate from a broad perspective, you can see that the parity has been broken many times recently, both up and down. There is currently no clear direction on this currency pair. I think that only if the level of 1.0100, or 0.9900, is beaten could the trend move more. So we have to be patient and wait for the situation to be resolved. The longer the price remains in the horizontal trend, the stronger the breakout should be.
It is also worth mentioning the SNB, which at the last meeting pointed out that it has a suitable tool to intervene in the currency market and is able to use it if necessary.
After 10:00 at USD/CHF we can observe the parity level test from above. At the moment the demand response can be expected at 1.0000, or slightly lower at 0.9981, where the bottom limit of the local system is 1:1. Its negation may lead to another attack on the area of 0.9900.