The USD/CHF pair broke higher during the course of the day on Wednesday, breaking the top of the shooting star that had formed on Monday. With this, I believe that the buyers are starting to take over again. This makes sense of course as the Swiss franc has been sold off in general, and of course the US dollar is the favored currency in general at the moment. The fact that we broke above the top of the shooting star is a very bullish sign, and I feel that it is only a matter of time before the buyers really push this market much higher, probably aiming for the 0.98 level first, and then the 0.99 level followed very closely by the parity level.
There is a European Central Bank interest-rate announcement today, and although that does not feature either one of these countries, the truth is that the Swiss economy is highly driven by what’s going on in the European Union, so it is possible that the announcement and press conference could have an effect on this market. However, I believe that the market pulls back, looking for support on short-term charts might be the way to go. After all, if the Euro weakens, the EUR/CHF could pull this pair down. But ultimately, the EUR/USD will fall and that should pull this pair higher, as it will bring in strength of the US dollar which in the end will be a bigger mover of this currency pair.
Buying dips
I continue to buy dips as they appear in this marketplace, and believe that the 0.95 level will be a bit of a “floor” in this market going forward. I still think it’s only a matter of time before we hit parity, but I’m not foolish enough to think that this market is going to shoot straight up. I believe the volatility will continue, but as a result I think it will offer several different buying opportunities from time to time. I have no interest in selling at the moment.
