- The US dollar has bounced ever so slightly against the Swiss franc during trading here on Monday as the 0.81 level continues to be a major area of contention.
- We are in the process of at least potentially forming a bit of a double bottom. So, I think that is worth paying close attention to.
Ultimately though, I think you have to look at this through the prism of a market that still has a lot to do in order to prove bullish. Now, having said that, it looks like the sellers are running into a little bit of trouble, but if we were to break below the lows of Friday, I think we could open up the door for a move down to the 0.80 level.
Although I’m not going to get aggressive with that. I think you’ve got to realize that ultimately, this is a market that is going to favor the latest headlines, determining where it goes. The Swiss franc is a major safety currency, while the US dollar is as well, but the Swiss franc is much more along those lines of safety.
If Risk Appetite Returns to the Markets
Risk on, this USD/CHF pair will rally and there are overtures out there supposedly by the Iranians looking for a way out of this war and that might be what starts to kick this off. We’ll just have to wait and see. With this, I’m watching very closely, and I think this could be a nice setup, perhaps a move to the 0.83 level as possible, but we need a little bit of momentum.
We don’t have it quite yet, but we are starting to show signs of another potential bounce. This is a pair that pays a positive swap at the end of every day, so that’s something worth paying attention to as well.
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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.