Swiss Franc Climbs to Two-Week High Against Dollar, Pressures Key Barriers

A strong downward acceleration pushed the USDCHF to a two-week low on Thursday.

The Swiss franc advanced nearly 1% by early US trading, marking its biggest one-day gain since late December. This surge was underpinned by better-than-expected Swiss Q1 GDP figures and comments from SNB chief Thomas Jordan, who highlighted a small upward risk to the inflation forecast and diminished expectations for another rate cut in June.

The fresh weakness increased the risk of completing a Head and Shoulders pattern on the daily chart, with the neckline just below the psychological 0.90 support level, potentially signaling a deeper correction of the 0.8332/0.9224 Dec/May uptrend.

The technical structure on the daily chart is weakening, as the 14-day momentum heads south and breaks the centerline. Additionally, the daily Tenkan-sen and Kijun-sen remain in a bearish configuration. However, bears may face increased headwinds from the top of the thick rising daily cloud at 0.9039, guarding the next pivots in the 0.9000 zone.

Any upticks should be limited and not exceed the daily Tenkan-sen at 0.9101 to keep fresh bearish momentum in play.

Res: 0.9090; 0.9101; 0.9141; 0.9158
Sup: 0.9039; 0.9000; 0.8918; 0.8883