The US dollar has been strong against the Swiss franc over the last several weeks. It now looks like we are on the verge of potentially breaking much higher.
USDCHF
The US dollar has rallied a bit against the Swiss franc during the trading session, as we are seeing US dollar strength across the board despite the fact that interest rates in America have dropped a bit during the session.
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Nonetheless, this is a market that still favors the US dollar from an interest rate differential standpoint, and you get paid to collect that swap at the end of every day. In fact, I think you've got a situation where we may be talking about a longer-term turnaround.
Analyzing Key Technical Levels
The 0.81 level is an area that would be a massive bottoming pattern just waiting to happen, and in theory, at least, you could see somewhere around the 0.87 level as a target.
Ultimately, I think this is a market that, when you do get short-term pullbacks, unless something changes quite drastically, then you have a situation where any dip should be thought of as a potential buying opportunity.
I have been a buyer of this pair for quite some time. I remain in this trade, and you can see it's been noisy and choppy, but I get a little bit at the end of every session regardless of what happens. Over time, it builds up quite nicely.
With that being the case, I think the US dollar continues to go much higher, perhaps to the 0.87 level, although in all frankness, we actually could see this market go to 0.87 over the course of the next 18 months. This is not a quick-moving pair; that's why it's so important to get paid at the end of every day, because it's more like an investment. The 0.80 level underneath it should end up being support.
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