USD / CHF in the near term

Overview of the basics

The US dollar opened higher against most major currencies on Monday, and continued to dominate throughout the Asian session, especially after Trump announced yesterday that he would impose tariffs and sanctions of 25% on Colombia because it refused to receive deported migrants, Colombia then responded in kind by imposing tariffs of 25% on US imports.

After that, Colombia accepted illegal immigrants returning from the United States, and this, in turn, led to the weakening of the US dollar again.

The markets are also waiting for the US interest rate decision next Wednesday and expectations indicate that the interest rate will be fixed unchanged.

On the other side of Switzerland, nothing has changed so far, as the Swiss National Bank cut interest rates by 50 basis points at the last policy meeting to bring the interest rate to 0.50%, and the bank also abandoned the language indicating further cuts to come.

Thus, the forecast suggests that the central bank is likely to slow down the pace of easing, which the market was already expecting with two pricing cuts of 25 basis points for this year.

Technical analysis of the USD / CHF pair

The USD / CHF pair has fallen strongly by more than 100 points so far since the opening of the day, and almost reached the levels of the uptrend on the daily frame, which is centered around the levels of 0.8960 and around.

We expect the pair to bounce back higher after reaching very close to the strong uptrend as we expected in the weekly currency analysis video here

We are currently targeting the levels of 0.9060 and then the main peak levels at 0.9200.

This scenario fails if the 0.8900 level breaks down.