- The US dollar initially did try to rally against the Swiss franc during the trading session on Friday, but it looks like the 0.80 level has offered enough psychological resistance to turn the market around and form a bit of a shooting star.
- If we can break above the 0.81 level above there, then I become interested in buying.
Until then, I think this is a market that's probably more or less going to be sideways, perhaps consolidating as we try to figure out what we are going to do going forward. And there are a lot of political issues out there that cause issues. And the Swiss franc is a safety currency. It's actually a safer currency than the US dollar.
(Click on image to enlarge)
So, this shows that there is a lot of uncertainty out there when it comes to politics, geopolitics, trade deals, things like that. If we can break above that 0.81 level though, we not only clear an area of previous support, which should be resistance, it would also have the US dollar clearing the 50 day EMA. On the downside, the 0.79 level is an area I'll be watching as it should be a significant support level and that
If We Break Below
I think breaking below there really unleashes a lot of selling pressure. So, with that being said, I think you probably would have the next flush lower. It'll be interesting to see how this plays out, but as long as the Euro / Swiss Franc pair says somewhat stable, the Swiss are probably okay with a strong Swiss Franc against the greenback but watch the Euro against Swiss Franc. If it suddenly plunges, the Swiss National Bank suddenly comes into the picture for potential intervention.
More By This Author:
Pairs In Focus - DAX, Copper, Silver, Gold, Nasdaq 100, USD/CAD, USD/JPY, EUR/USDSilver Forecast: Finding Buyers On Dips
DAX Forecast: Drops From €24,600 Resistance
Comments
Log in or sign up to join the conversation.