USD/CHF Forecast: Dollar Surges Higher

By Christopher Lewis of DailyForex
Tuesday, July 2, 2024 9:17 AM EDT
  • The US dollar has exploded to the upside during the trading session on Monday to slam itself above the shooting star on Friday.
  • The Swiss franc is most certainly on its back foot at the moment and therefore I think it makes a certain amount of sense that we continue to see this market truly favor the upside and perhaps go looking to the 0.9250 level.
  • This is an area that has been very important in the past, and I think it could be in the future as well.
  • Market memory does seem to be important in this market overall.
     

Patience Will Be Key

It's going to take a minute to get there, but I do believe that is what we continue to see as a potential, not only target, but barrier for longer-term traders to focus on. Short-term pullback should continue to be buying opportunities, and I believe that the 0.90 level now could offer a little bit of market memory and a short-term floor. If it holds, this could be a very strong sign for the greenback.

Just below there, we have the 50 day EMA, and that of course is something worth paying attention to as well. But the thing that really captures my attention is the fact that the candlestick is just as big as it is. This means there's real belief behind this move, at least typically that's what it means. And therefore, I think a lot of traders are going to be looking at this as a potential buying opportunity.

(Click on image to enlarge)

USD/CHF Forecast Today 02/07: Dollar Surges Higher (graph)

The USD/CHF market had recently pulled back to the 38.2% Fibonacci retracement level, and then recaptured the 200 day EMA followed by the 50 day EMA. In general, I think this is going to be a messy pair, but that's nothing new. But you do get paid at the end of every day to hold it. And I think that's something that you just cannot forget. It's an investment for longer-term traders. You can never put that to the side. I remain bullish.

More By This Author:

GBP/JPY Forecast: Strong Rally Amid Wide Interest Rate Differential
Nasdaq 100 Forecast: Consolidates At High Levels
GBP/JPY Forecast: Bullish Pressure And Buy Dips

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