USD/CHF has met a confluence of support as the US Dollar extends higher. Latest positioning data shows that CHF net shorts had been climbing for a third week. FOMC minutes at the top of the hour is next major risk. USD/CHF has met a confluence of support as the US Dollar extends higher on Wednesday ahead of the Federal Open Market Committee’s Minutes today and US consumer Price Index tomorrow. 

Bulls target risk back to the top of the channel and recent highs of 0.6750. Bears seek a break of trendline support and a resumption of the downside within the bearish channel. AUD/CHF has been resilient against the odds, considering the risk-off tone in markets were otherwise, the CHF usually performs.

AUD/CHF is in the midst of a sell-off which could extend beyond a 38.2% retracement for a 50% reversion. A subsequent pull-back, however, to the resistance and another sell-off will likely make for a high probability set up. AUD/CHF is in the midst of a sell-off which could extend beyond a 38.2% retracement of the August lows to September highs, located at 0.6715, and target the 50% retracement at 0.6674 (meeting the 2019 lows) should the markets continue to unravel AUD longs coupled with uncertainties surrounding the health of the global economy. 

This week the BoJ will hold its regular policy meeting. Global uncertainty, linked to the trade war and Brexit, has strengthened the value of the Swiss franc and Yen. CHF/JPY is struggling to maintain the upside as the Yen picks up a safe haven bid, anchored on geopolitical developments following a textbook risk-off response in global financial markets following the strike on Saudi Arabia’s oil facilities over the weekend.

EUR/JPY rallies hard following hawkish ECB cut and trade war optimism. EUR/JPY tracking positive sentiment in financial and commodity markets. While the trade war tensions seem to be easing, with stocks climbing and risk appetite returning in droves to financial and commodity markets, EUR/JPY is up 0.79% on the US session so far following what has been perceived as a hawkish rate cut from the European Central Bank earlier today.

The cross needs to hold above the 1.0970s and beyond the 25th July swing lows. To the downside, a break back below the prior descending resistance will spell bad news for the bulls. EUR/CHF has been running higher of late, despite the onset of the European Central Bank – a possible buy the rumour sell the fact scenario as the less committed euro shorts are squeezed.

US/Sino trade teams will consult in mid-September with a view for a meeting in Washington in early October. USD/CHF is currently trading 0.26% higher and bouning of trend-line support.

SNB jawboning CHF lower as concerns mount over global growth fears and a flight to safety. EUR/CHF is already trading close to the lows of the year. The Swiss National Bank’s Andréa M Maechler, Member of the Governing Board, has crossed the wires saying that ‘any intervention’ requires an analysis of cost/benefits – plenty of jawboning going on here.