FX traders might break a negative seasonal trend this month as USD/CHF rises.
Analysis shows for March since the year 2000 USD/CHF has dropped in 14 of the past 21 years, or 67% of the time.
Seasonality data on its own must be corroborated by other factors.
If global stocks come under sustained pressure again this month, demand would probably grow for the safe-haven Swiss franc, which in turn could limit USD/CHF's upside.
The technical outlook, however, suggests USD/CHF is likely to break its March curse.
Last week, USD/CHF registered a 117-pip rise, its biggest one-week rise since November 2020, which could provide the momentum for spot to close higher this month.
This week, USD/CHF's strong rise has broken the 0.9169 Fibonacci level -- a 76.4% retrace of the 0.9296 to 0.8759 (September 2020 to January 2021) fall -- another positive development.
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