- 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.
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.
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Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.