The USD/CHF pair fell hard on the session for Wednesday. The pair reflected the Dollar negative attitude around the markets, but one cannot be too aggressive in buying the Franc as the Swiss National Bank is working against appreciation of its currency.
The 0.90 large number gave way, but looking at the charts, we can see this support area have been as low as 89.00, so these 100 pips are important. With the SNB working against the Franc, we can only buy this pair, but are presently waiting to see if we get some kind of supportive candle in order to do so. The SNB is more worried about the EUR/CHF pair as a measuring stick of the Franc’s strength, but the USD/CHF pair will react to the move if they intervene again. Because of this – we can only buy, and the USD is now the only real “safe haven” as the Franc can no longer be held for any real length of time.