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market analysis
From 0.8123 to 0.80, who is selling the US dollar and grabbing Swiss francs?
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Hello everyone, today XM Forex will bring you "[XM Foreign Exchange Decision Analysis]: 0.8123 to 0.80, who is selling the US dollar and grabbing Swiss francs?". Hope this helps you! The original content is as follows:
On Tuesday (November 11), the US dollar against the Swiss franc continued its decline after retracing the previous trading day, and the current price during the North American session is around 0.80. The periodic strength of the Swiss franc caused the exchange rate to fall from last week's high of 0.8123. The market repriced risk and hedging weights around policy and tariff expectations, US fiscal progress and employment clues.
Fundamentals:
In the past two weeks, news that the United States and Switzerland may xmxyly.complete a tariff arrangement in the short term has become a direct driver of the exchange rate. Market rumors indicate that if finally implemented, the U.S. import tax rate on Swiss goods is expected to be reduced from 39% to 15%. The numbers are neither big nor small, but they have substantial implications for the marginal xmxyly.competitiveness of manufacturing and precision exports: the reduction in tariff burdens will improve the profit statements and order visibility of Swiss export xmxyly.companies, thereby enhancing the robustness of the current account and the basic support of the Swiss franc. Some large European and American institutions said in their reports that this plan is "relatively the best choice in a difficult environment", but also reminded that "it has not been finalized yet", so market pricing is mainly "cautiously optimistic". In other words, the strength of the Swiss franc is mixed with the option premium of uncertainty. Once the details of the negotiations fail to meet expectations, the related premium may quickly retreat.
In parallel, U.S. macro cues have not provided additional momentum for the dollar. In terms of finance, the Senate has passed the government appropriation bill and the bill is advancing to the House of Representatives. If approved by the middle of this week as expected, it will alleviate the risk of shutdown in the short term, but the impact on US dollar liquidity and curve term premium will be neutral. In terms of monetary policy, the Fed's xmxyly.communication is still based on "data decisions"; derivatives pricing shows that the probability of another 25 basis points cut in December is about 62%, the two cuts that have been implemented during the year totaled 50 basis points - this set of figures on the one hand suppressed long-term yields, and on the other hand limited the rebound height of the US dollar in the context of inflation still above the 2% target.
For the Swiss franc, if the tariff arrangement is advanced, Swiss export expectations will improve and Switzerland’s attributes as a safe-haven currency will often make funds willing to hold some exposure to the Swiss franc when global risk assessments rise. In the short term, the market will focus on tracking U.S. employment clues and the pace of budget negotiations. Once the data and fiscal progress tend to be moderate, the falling tendency of U.S. bond yields will further suppress the U.S. dollar and indirectly benefit the Swiss franc.
Technical aspect:
From the daily K-line chart, the exchange rate formed an upward structure from the two lows of 0.7872 and the earlier 0.7828. After peaking at 0.8123, it entered a retracement-consolidation rhythm and is currently trading around 0.80. On the K-line xmxyly.combination, the recent continuous negative lines of small entities are accompanied by the upper shadow, indicating that the selling pressure from above is still there; if 0.8075 and 0.8123 are used as resistance bands in the early stage, it is possible to retest the latter after breaking through the former.
At the indicator level, MACD currently has DIFF about 0.0021 and DEA about 0.0017. It is still above the zero axis but the histogram has narrowed, and the momentum shows signs of "shrinking volume" - the bulls have not lost control of the market, but the marginal advantage is diminishing; once DIFF turns downward and is close to the signal line, one needs to be wary of the technical retracement caused by the "death cross above the zero axis".
Based on the price scale, the 0.7980 and 0.7930 bands form the first static support. If they fall below, it will point to the two previous lows of 0.7872 and 0.7828. On the upside, the 0.8040 mark and 0.8075 form a short-term resistance zone, further providing strong resistance at 0.8123. The key information given by the technical structure is that the trend has shifted from "upward and then retracement" to "neutral oscillation". Breaking or falling below the boundary of the above range will trigger the next trend wave.
Outlook:
Short-term path (1-3 days): If the news continues to be biased towards the Swiss franc (tariff negotiations advance) and the U.S. employment clues are not strong, the exchange rate is likely to be repeatedly under pressure below 0.8040, and the shock will move downward to test 0.7980; after breakdown, the bears will try to advance to 0.7930, and use 0.7872 as the lower edge backtest of the "trend confirmation level". If there is a macro-positive surprise for the US dollar, the upper side will first look at 0.8040. If it breaks through and stabilizes, it can restart the impact on 0.8075. A further test of 0.8123 demand can cooperate with the simultaneous improvement of fundamentals.
Midline frame (1-3 weeks): The structural key lies in the band boundary formed by 0.8123 and 0.7872/0.7828. If there are two major conditions superimposed in the future - first, the tariff arrangement is officially implemented and the details are better than the rumors; second, the Fed continues to guide easing expectations - then the mid-line buying of the Swiss franc is expected to strengthen, and the probability of USD/CHF falling below 0.7872 will increase. At that time, the trend may evolve into a downward trend of "retracement-breakdown-continuation".road. On the other hand, if negotiations recur, the Fed's attitude turns more cautious, or U.S. data recovers in stages, and U.S. dollar yields rise again, the "resistance band" above 0.8075 will be gradually digested, and more space can be opened above 0.8123, and the daily structure will be pulled back to the upward channel again.
The above content is all about "[XM Foreign Exchange Decision Analysis]: 0.8123 to 0.80, who is selling the US dollar and grabbing Swiss francs?". It is carefully xmxyly.compiled and edited by the XM foreign exchange editor. I hope it will be helpful to your trading! Thanks for the support!
Due to the author's limited ability and time constraints, some contents in the article still need to be discussed and studied in depth. Therefore, in the future, the author will conduct extended research and discussion on the following issues:
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