USD/CHF Forecast: Bounces from Support Against Franc

All things being equal, I think you have a situation where the market is very noisy, so you have to be careful, but I think we are in an area that is setting up a bigger move, so the money is available. just depends on market monitoring. USD/CHF bounced back slightly in Thursday’s trade to show signs of life at a key support barrier. Looking at the long term chart, one could argue that this is an important area as it has previously resisted and offered support a number of times. The question is do we form some kind of basic pattern and charge or do we eventually fall apart. Advertisement IS MONEY READY TO WORK FOR YOU? TRADE NOW There is a lot of movement in the 0.9350 areas as we have seen it hold both buyers and sellers on several occasions. So I think we’re in a sit-down situation, but it’s worth noting that we couldn’t get out of there before turning around. The last two sessions we had a huge selloff, but you could also argue that Thursday was probably a little bit even then because it was Thanksgiving in America. Friday is probably a little dead too, so keep that in mind. However, the shopping centers of London and Europe can choose to protect and elevate this area. If we break below the 0.93 level, I would see this as a disturbance that could have legs, possibly sending the USD to the 0.91 CHF level. Noise Ahead Any rally at this point will likely require close attention to the 200-day EMA near the 0.96 level. A break above this then opens the possibility for the US dollar to recover to the 0.98 level. Even so, the minutes of the FOMC meeting suggest that some members are considering a rate cut, prompting people to sell US dollars. Regardless, the difference in interest rates is still astronomical, so I wouldn’t get too excited just yet. All things being equal, I think you have a situation where the market is very noisy, so you have to be careful, but I think we are in an area that sets up a bigger move, so the money is there, just watch the market

Ethan Andrews

Learn More →

Dodaj komentarz

Twój adres e-mail nie zostanie opublikowany.