Like the USD JPY, the USD CHF is being drawn like a magnet to a major retracement zone between 1.1335 and 1.1562. Unless acted upon by some outside force like an unexpected intervention or this Friday’s Non-Farm Payroll Report, look for the sideways trend to continue.
The stronger U.S. Dollar kept pressure on the Swiss Franc throughout the day. News that Swiss bank UBS posted a loss had little effect on this market because traders are now looking forward to better times instead of to the past.
Technically, the USD CHF is locked inside a retracement zone at 1.3350 to 1.1565. This is very similar to the formation in the USD JPY. This pair is likely to stay within this range until it is acted upon by an outside force like an unexpected intervention or Friday’s Unemployment report.