Forex: USD/CHF plunges below 0.9100 level

The USD/CHF has certainly wilted ahead of the ECB decision later this afternoon, as the pair plunged 40 pips off its European highs (0.9112) to record fresh lows at 0.9072. However, in recent minutes, the pair has pared some of its losses to trade at 0.9082/86 at the time of writing, still ultimately incurring a loss of -0.19% Thursday.

After rupturing calculated support at 0.9089, Slobodan Drvenica, an analyst at Windsor Brokers Ltd., suggests the cross will be fortified by supports at 0.9054, down to 0.9020, and finally 0.9000 (key downside barrier). On the upside or in regards to a recovery, the USD/CHF will encounter resistance at 0.9150, then 0.9177, and finally the 0.9200 handle.

According to Slobodan Drvenica, “The USD/CHF failed to clear the 0.9150 barrier (61.8% of 0.9225/0.9020 and 55-day EMA), as rejection here brought the price back to the previous congestion around the 0.9100 barrier. With near-term studies lacking momentum, not much of a recovery is to be expected so long as the initial 0.9150 barrier stays intact.”

Earlier today in Switzerland, the Foreign Currency Reserves (January) came in at 427B, compared with a nearly identical figure of 427.2B in the previous month.