Swiss franc as safe haven
Christophe Chevalier July 29, 2020 6:49 AM
USD/CHF is falling on fears of a second Covid-19 wave.
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
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