- During my daily analysis of the USD/CHF pair, I have seen a certain amount of bullish pressure that I think continues to be of importance.
- I think at this juncture, this is a market that will more likely than not continue to go higher, and we are clearly at a minor resistance level, but I think it will eventually get broken.
- If we do break above there, then the market is likely to go looking to the 0.8750 level.
I find the 0.8750 level particularly interesting as it was a major swing high, but it is also where the 200 Day EMA currently hangs around.
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In other words, I think there are a lot of different things going on at the same time and that will continue to keep this market somewhat noisy. That being said, the market is also going sideways due to the fact that I think we are trying to work off a lot of excess froth.
The market has recently gotten very bullish, and this is a pair that isn’t typically very active, so that of course has a lot of traders paying close attention to it.
Technical Analysis
The technical analysis for the USD/CHF currency pair is starting to go from bad to neutral. We are currently between the 50 Day EMA and the 200 Day EMA indicators, which of course a lot of people will be paying close attention to, as they are typically followed by longer-term traders. As we are essentially in the middle of these 2 indicators, I think there is still a lot of questions to be asked.
The 50 Day EMA should be massively supportive, but I think the 0.8550 level underneath there would be a major support level as well. After all, it had previously found a lot of resistance, so I think ultimately there should be a certain amount of “market memory” in that vicinity, so it makes a lot of sense that it should continue to hold as support.
That being said, we could just simply take off to the upside from here. Remember, you get paid at the end of the day to hold onto this pair.
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