USD/CHF: Risk reversal drops for two consecutive months

One-month risk reversal of USD/CHF, a gauge of calls to puts, drops for the second consecutive month by the end of April, per the latest data from Reuters.

This goes against the USD/CHF downtrend that teased March lows, up 0.42% intraday near 0.9145 by the press time of early Tuesday.

Risk reversals flashed -0.187 figure in March before declining to -0.200 for April. The same should have tamed the USD/CHF buyers. However, the latest safe-haven backup to the US dollar seems to play its role in testing the pair’s downside.

Technically, the 200-day SMA level near 0.9085 restricts short-term USD/CHF downside ahead of the early February tops around 0.9045. Meanwhile, buyers aren’t likely to take fresh entries until witnessing a clear break above 0.9135-40 area comprising lows marked since March 02.