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USDCHF
The Swiss Franc surges on risk-off flows as US Dollar longs get squeezed. What's next?
Table of Contents
Key Takeaways (30s Read)
The Swiss Franc surges on risk-off flows as the US Dollar weakens.
Fundamental Overview
USD:
The US Dollar has been weakening following President Trump's escalation regarding tariffs on Greenland. He has threatened to impose a 10% tariff starting February 1 on several European countries, which has led to a sell-off in the Dollar. The current downturn may be a result of unwinding recent long positions on the Dollar. If economic data strengthens, the Dollar could rally again in response to de-escalation news.CHF:
The Swiss Franc is surging due to risk-off sentiment, with the SNB remaining firm on its monetary policy. The outlook is optimistic, supporting the Franc's strength against the Dollar's weakness.Technical Analysis for USDCHF
Daily Chart
In the daily chart, USDCHF has erased all January gains due to the risk-off sentiment, with a potential support at 0.7870 if further declines occur.4-Hour Chart
The price reached 0.7900, where dip-buyers are expected to enter, while sellers may look for a break lower.1-Hour Chart
On the hourly chart, a downward trendline suggests potential price action; pullbacks could see sellers leaning on this trendline for new lows.Upcoming Catalysts
Market attention is focused on the upcoming US ADP job data and the Supreme Court decision regarding tariffs. Trump's speech tomorrow at Davos may also provide significant market-moving news.AI Analyst
AI Opinion
"The Swiss Franc's surge reflects a strong risk-off sentiment, significantly influenced by uncertainties surrounding US economic policies. Trump's recent escalation concerning tariffs has injected volatility into the market, driving buyers towards the Franc for safety. Stablity in the Swiss National Bank's monetary policy also supports the Franc's position. Looking forward, upcoming economic data will be pivotal, and should the Dollar rebound on any positive developments, it could significantly affect the Franc's performance, requiring traders to tread carefully with their positions."
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