- The USD/CHF pair continues to see a lot of noisy behavior near the 0.86 level, and this has caught my attention.
- Furthermore, the market is also hanging around the 50 Day EMA indicator, which I think is a major area of interest for technical traders.
- That being said, I also recognize that the 0.86 level has been tested more than once, in both directions.
- All things being equal, the market is likely to continue to see a lot of volatility, but I do think that we have a very well defined area to pay close attention to.
Technical Analysis
The technical analysis for this pair is somewhat negative, but at this point in time it’s likely that we could see the market test what has been a major barrier in the form of the 0.86 level. If we break above there, then the next swing higher is likely to be to the 0.8750 level, as the market has previously seen a lot of resistance at previously. Furthermore, we also have the 200 Day EMA hanging around that same region, so it all comes together as a potential target for more bullish traders to jump into this market.
Top Regulated Brokers
The candlestick for the day is rather noisy, but it is worth noting that somewhere near the 0.8525 level underneath has offered a bit of support in the short term, as it had been previous resistance for several weeks. The consolidation of course is something that traders will pay close attention to that had just been broken out of, and you can also make an argument that the 0.84 level is an area where a lot of people will be looking at as a potential “floor in the market”, as the area has offered quite a bit of support in the past. All things being equal, this is a market that I think given enough time will continue to see more interest in the US dollar then the Swiss franc, as it looks like the US economy is outperforming many others around the world.
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