The Swiss Franc (CHF) is experiencing marked losses against both the Euro (EUR) and the US Dollar (USD) as the American session draws to a close on Thursday.
Focus remains on the Middle East, energy prices, and the SNB
The ongoing depreciation of the Swiss currency has pushed USD/CHF to fresh multi-day highs around 0.7850, while EUR/CHF has managed to reverse two consecutive days of losses, advancing modestly to the 0.9040 zone.
In the current flight-to-safety context, the Franc appears to be struggling against the Greenback. However, it is widely anticipated that it will regain demand if the geopolitical landscape deteriorates further, which, regrettably, seems quite likely.
Another factor supporting the CHF is expected to arise from the energy sector, as both crude oil and gas prices continue their intense rally unabated, raising doubts about any prospects of alleviating inflationary pressures on both sides of the Atlantic.
In the meantime, the possibility of intervention by the Swiss National Bank (SNB) should caution investors against pursuing further appreciation of the Franc, particularly in the current climate of safe haven demand.
Tech levels to watch
The surpass of the March ceiling at 0.7878 (March 3) could motivate USD/CHF to face its interim 100-day SMA at 0.7899, seconded by the always relevant 200-day SMA at 0.7959. In contrast, once the March base at 0.7668 (March 2) is breached, the pair could shift its attention to the February trough at 0.7628 (February 10) and then the 2026 valley at 0.7601 (January 28).
Regarding EUR/CHF, next on the downside comes the all-time low at 0.8980 (March 9).
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