- The US dollar has rallied against the Swiss franc during the trading session on Wednesday, as we are now above the 0.80 level. This is a victory for the US dollar, and it’s likely that we will continue to see this market try to build upon this momentum.
- If we do, then the 0.81 level above ends up being a major target, and if we can break above there, then it’s likely that the market could go much higher. Ultimately, this is a market that has been negative for quite some time, but now we have broken above a significant uptrend line, and it’s possible that we could see this market try to reverse the overall trend.
Technical Analysis
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It’s interesting that we broke above the 50 Day EMA during the trading session, and I think that’s something that traders will have to be cognizant of. While that doesn’t necessarily mean that the trend has changed, it certainly shows that the momentum is starting to lean to the upside. Furthermore, it’s worth noting that the US dollar has strengthened in general, and the Swiss franc doesn’t seem to be any different. If we can continue to go to the upside, then the 0.81 level is your next target. If we can break above the 0.81 level, then at that point in time I suspect that we see the overall trend change. In that environment, I think it becomes a longer-term “buy-and-hold” situation.
On the downside, the 0.79 level is support, and I think if we were to break down below there, then the market is likely to go looking to the 0.73 zero level, an area that offered support previously. With this being the case, I think you would probably see a major “risk off moment”, as the Swiss franc is considered to be a safety currency, and people may go running to it if things really start to fall apart.
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