The sentiment in the Swiss franc very much mimics the euro at this stage, with both the ECB and SNB arguably the two more hawkish major central banks. That sense of policy divergence and the fact that the SNB has managed to weather the Credit Suisse crisis rather modestly, or so it would seem, has definitely helped the currency.
A languishing dollar and key breaks below technical support levels recently are also two more factors weighing on USD/CHF, especially the recent drop back under the 0.9000 mark.
And with the franc also traditionally a favoured haven alternative, any hints of major risk aversion may not hurt the currency as badly as the others.
However, let's just keep it simple and look at the technicals for USD/CHF at the moment. The pair has been on a downtrend since March and the break of key support levels is now putting the pair in a precarious spot.
Sellers look poised to try and push for a test of 0.8800 and the January 2021 lows. That is an extremely important level to be mindful of, as a break below that will see little technical reference for traders on the way down. The comparable lows after that are the ones from the 2015 fiasco where the SNB pulled the rug from under traders' feet on the EUR/CHF floor.
For now, it is pretty much a case of if buyers can return back above 0.9000 or if sellers can break below 0.8800 I would say. And if it is the case of the latter, that might just see the franc get another boost against the other major currencies as well.
