USD/CHF: NBS Traditionally Considers Swiss Franc Overbought
Yuri Papshev | Mar 25, 2021 07:42AM ET
During its regular meeting on Thursday, the Swiss National Bank decided to leave interest rates unchanged and continue to adhere to a stimulating monetary policy. The leaders of the NBS also confirmed their readiness to continue interventions in the foreign exchange market, traditionally considering the franc overbought.
In the current situation of strengthening the dollar, long positions in USD/CHF are preferable, and the breakdown of the local resistance level 0.9380 will be a signal for their buildup. Also, one cannot exclude the currency intervention of the NBS with the sale of the franc, which the bank never announces either before or after this intervention.
If the USD/CHF continues to rise, the closest target will be the resistance level 0.9495. More distant growth targets are located at resistance levels 0.9555, 0.9670.
h2 Trading scenarios/h2Sell Stop 0.9320. Stop-Loss 0.9385. Take-Profit 0.9296, 0.9200, 0.9170, 0.9107, 0.9000
Buy Stop 0.9385. Stop-Loss 0.9320. Take-Profit 0.9495, 0.9555, 0.9670
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