The USDCHF resumed its slump on Friday as the Swiss Franc is attracting new safe-haven bids. This move follows the declaration of a global recession by the IMF Managing Director, Kristalina Georgieva.
In a statement which financial news media have monitored over the news wires on Friday, the IMF Chief said that “It is clear that the world has entered a recession as bad or worse than the global financial crisis…recession for 2020 expected to be quite deep”.
She further opined that the IMF projects 2021 as a year of global economic recovery, but only if the coronavirus outbreak is contained and financial liquidity boosted. She also said the IMF was considering the expansion of precautionary credit lines and also to bring forward provisions it had in place for liquidity.
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Technical Outlook for USDCHF
The Swiss Franc is attracting bids on the news while the US Dollar is selling off across the board against other major currencies. These factors are pressurizing the USDCHF at the moment, causing it to trade lower on the day.
The USDCHF is trading at 0.95679 and is retreating fast towards the support level posed by the 0.95496 support level. A break below this level targets the 0.94963 minor support (intraday high of March 16). The intraday low of March 5, which has its roots at 0.94324, poses yet another support challenge for downward-trending price action.
On the flip side, intraday recovery could target the resistance areas at 0.96274 and 0.93565 (March 2 and March 17 intraday highs).