The safe-haven Swiss franc hits its highest levels in a decade against the US dollar as the trade war escalates

USDCHF dropped to its lowest level in ten years on Friday, as the safe-haven Swiss franc benefited from a strong influx into safe assets due to the escalating US-China trade war.

The 1.7% decline on Friday, which followed a nearly 4% drop on Thursday (the biggest one-day fall in almost three years), is pushing the pair toward a weekly loss of around 4.5%, the largest weekly drop since the second week of November 2022.

This fresh weakness broke below the lower end of the broader range on the monthly chart, signaling the continuation of the larger downtrend that began at the parity zone (October/November 2022 highs) and exposing targets at 0.8000 (psychological level) and 0.7840 (Fibonacci 76.4% of the 0.7067/1.0343 uptrend).

Meanwhile, price corrections due to profit-taking may be expected, with any rebounds likely to be limited in the very favorable environment for the Swiss franc, offering better selling opportunities.

The Swiss National Bank has not commented so far, but intervention to curb sharp gains in the national currency remains a possibility.

Res: 0.8815; 0.8851; 0.8885; 0.8906
Sup: 0.8762; 0.8725; 0.8690; 0.8615