The Swiss Franc is nearing parity with the Us Dollar. The Franc has already weakened by 205 since the SNB set the minimum for EURCHF.
Chris Walker, a currency strategist at UBS AG in London, assumes that the decline is mainly caused by the diversification of the SNB’s currency reserves after the latest currency interventions. According to him, over 50% of the Euro currency the Swiss central bank buys is converted into US dollars. So far, this is the major driver for USDCHF. This driver will remain strong in the near future.
According to Bernd Berg, a currency strategists at Credit Suisse’s office in Zurich, another decline of EURCHF down to the previous level may force USDCHF to reach parity.
According to , USDCHF is forming wave 4 or В(С) inside a big-scale upswing, represented by wave А(С)/С of level Daily2.
A further decline will meet support at 0.9715, 0.9666. A break below 0.9677 will cancel the wave-4 scenario. A break above the local high at 0.9872 will indicate the forming of wave 5 or А inside the “Hound of the Baskervilles” pattern by Elder/MF. The closest level of resistance is located at 0.9932.
