The Swiss Franc is unloved

January 19, 2025 Leave a comment

The #Swiss Franc versus the USD has traded down to its lowest point since March 2023.

That’s just a price point fact, nothing more.

The Swissie is in a downtrend and it still has strength. It’s out of favour.

‘We’ love to sell the Swissie when risk is ‘on’,

but I think the medium low is near if it doesn’t make a new ‘lower low’.

If it does, we should see a quick visit to the 1.0680 region and that would be an attractive buying point.

but also, I’m observing some divergence in the #Swissie compared to other assets.

January 19, 2025

rob@karriasset.com.au

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Unloved CHF = buy equities

September 2, 2024 Leave a comment

When the CAD/CHF is declining, ‘they’ are selling the Loonie and huddling into the safety of the Swissie.

This happens when ‘we’ don’t fancy a risky environment. That also means risker assets such as equities are also being aggressively disposed.

While not to be used in isolation, the study below shows 16 moments (over the past 40 years) when the CAD/CHF registered a Monthly RSI reading of less than 33.

When it does, perhaps ponder increasing your asset allocation towards equities.

The nuance is which equities (market) to buy.

Currently, it’s close but not there yet.

And remember, currencies don’t lie or tell stories.

September 2, 2024

by Rob Zdravevski

rob@karriasset.com.au

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