The USD/CHF has demonstrated some bullish performance albeit weak bullish momentum after the Swiss government revealed plans to slowly ease restrictions aimed at slowing down the spread of the coronavirus.
The USD/CHF saw strong support at around the 0.9679 price level followed by bullish momentum which allowed the price to break above the 0.9687 and 0.9715 resistance levels. There was also strong resistance at around the 0.9726 price level, indicating that the bulls lacked momentum to push through. This restricted the price between those key support and resistance levels.
This performance comes amid the World Health Organization’s directive, urging European countries to exercise caution if they do decide to ease the lockdown measures that were aimed at slowing down COVID-19’s spread. Switzerland is one of the countries that have so far managed to curb the spread of the coronavirus. This is why it is currently planning to ease the strict lockdown measures that it had implemented which led to a shutdown of non-essential businesses.
The Swiss government announced in a statement that it planned to allow the reopening of businesses such as beauty salons and massage parlors from around April 27. Food markets, schools and shops will be allowed to reopen towards mid-May. The announcement was expected lend significant upside to the Swiss Franc but it is still too early to tell how things will turn out. While the slight upside yielded some gains for the CHF, it was still not enough to warrant notable gains for the USD/CHF currency pair.
Despite the Swiss government’s decision to allow the reopening of businesses, markets and schools, it is still keen on making sure that there will not be a resurgence of coronavirus infections. The government wants to support economic recovery but at the same time there are still concerns over the fact that the coronavirus is still a threat since no cure or vaccine has officially been announced. The government has encouraged Swiss citizens to continue observing strict measures such as social distancing and strict hygiene measures.