- The us dollar has skyrocketed during the trading session on Monday against the Swiss Franc, but we are still in an area where I'd be somewhat cautious.
- The area between the 0.8 zero level and the 0.8 one level offers a significant amount of noise.
- We have the 50 day EMA at the top of the range.
So, with that being said, this is a market that I think continues to see a lot of questions asked about the market. And I do think you need to be very cautious about expecting too much in this area because we need to get through previous support. So I am of the mindset that if we do in fact, break above the 0.81 level, then I become a buyer of the US dollar against the Swiss franc.
A lot of this may or probably was a reaction to the trade and now trade situation between the US and the European Union getting settled. And therefore, maybe the US dollar got a little bit of a boost due to the fact that it should take some of that risk premium out of the United States that we had seen recently.
Can We Continue from Here?
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Now the question is can we continue, and I think that's a question that we are going to have to sort out over the next couple of days. But again, I'm looking for a daily close above the 0.81 level to start buying. If we break down from here, it's not until we break down below 0.79, I start selling because I do think that we're in the midst of a consolidation pattern, especially when you look at the interest rate differential between the two currencies, I don't like paying swap at the end of every day. If I can avoid it, this has been a very strong candlestick and I think that's a good sign, but it doesn't necessarily mean that we're ready to break out again. want that confirmation above the 0.81 level to start buying. At that point, I think this becomes a longer term buy and hold type of scenario.
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