Swiss Franc at PARITY with US Dollar

Yes, indeed USDCHF (US Dollar / Swiss Franc) have reached above 'PARITY' levels as stated in our market call dated April 20, 2018. It is currently trading in Asian session at 1.0011 as of 5.7.18 coming from a long stretch at 0.9305 since February 2018. These prices now have VALIDATED our Market Price Call.

Reference Analysis: USDCHF & GBPCHF Cross Rate

The USD remains firm even when European markets would be on a holiday; FX markets for now have remained quiet with the underlying sentiments for the USD hold. Comparatively weaker with the YEN as a corrective move down to 108.65 occurred from the prior week.

Relative to a weaker Sterling that had missed expectation reports and the unlikelihood of not being able to raise UK rates have prompted CABLE or GBPUSD to move lower to levels at 1.3485. Thus spilling over the GBPCHF week's movements lower that drove it down towards 1.3473 coming from 1.3855.

Reference to GBPUSD

Reference to GBPCHF Cross Rate

Thus it shows how the market's behavior on a massive decline can create a 'Price Realignment' that was identified during the move. Where the aftermath of this decline also creates a probable pause and a price pullback scenario.

GBPCHF Cross Rate Lift USDCHF

The Sterling / Swiss Cross rate's resiliency even after CABLE's corrective decline from missing retail sales expectations have continued to dominate well within its near term trend direction. With the GBPUSD reaching a crucial resistance levels at 1.4375/80; it had limited effects on price action as the USD index (inverse price relation) have been on a struggle to continue its consolidation well within a tight range.

In spite of this condition, the #USDCHF likewise managed to rise to a significant level as indicated on the chart above, with a probable retest at the parity level while still trading at 0.9710 to this writing. Especially coming from a well technically motivated support price range at 0.9200 - 0.9305 which may also serve as a double bottom figure so to speak.

Meanwhile, when market conditions on the European majors does not change from ECB Mario Draghi that may influence not only the #EURO; the  GBPCHF Cross currently at 1.3768, but at the rate its moving would eventually retest its initial target levels at 1.4360/80 range in the near to mid-term outlook. This could lead to a scramble between the major Cross rates once any sudden changes on the EURO occurs.

The major pair's behavioral pattern and price action are confined within a major channel higher relative to its near term lower highs nearing the parity price levels with the USD. The USD have found a catalyst for a firmer tone in the form the 10 year US Treasury yields nearing the 3% threshold. This enabled the relative rise for the DXY back to 89.95 bp as of late Thursday US session. The week's closing will provide a better market outlook moving forward

For the time being, the market's sentiments would continue its course in the FX market. However, major market participants have been carefully watching equities and commodities as oil and precious metals are gaining grounds while US equity indices are still in a roller coaster ride with prices moving in both directions.