USD/CHF: Early Push Back this Morning

Robert Petrucci

The USD/CHF has experienced a solid bearish trend long term, but as important support levels get tested some short term push back has developed.

The USD/CHF tested important support levels last week when the 0.90100 came into sights. Since trading around that level briefly, the USD/CHF has moved within a vicinity of 0.90600 to 0.91555. However, bearish sentiment which has shadowed the USD/CHF long term continues to be dominant. Speculators of the USD/CHF should be aware that relative to most other forex pairs, the USD/CHF moves in a highly magnified range because of its rather tight value band.

The last month of trading for the Swiss Franc has been choppy and produced sideways action, but the USD/CHF has still been able to achieve a pronounced downward trend technically. However, after hitting important support levels last week, buying of the USD/CHF has emerged which looks strong when the small incremental moves of this forex pair are magnified by speculators who only seek short term trading positions.

Trading early this morning continues to press up against resistance and if the 0.91250 level fails to hold a stronger short term move might aim for the 0.91400 juncture.  The use of conservative leverage when trading the USD/CHF is vital to good trading outcomes which help manages risk properly. 

Speculators who wish to pursue selling the USD/CHF because momentum has clearly been bearish long term cannot be faulted.  Traders may want to allow resistance levels to be tested and look for a place to determine where another reversal downwards will emerge. A selling position near the 0.91125 juncture may give a speculator enough room to seek downward momentum while also limiting the risk upwards. The USD/CHF enjoys a very transparent trading environment; this is highlighted by the use of basis points which are carefully measured with incremental precision and allows speculators to manage their entry and exit points. Many traders of the USD/CHF prefer to enter positions with live market orders, wait for their price fills, and then put limit orders into their forex platform to choose their take profit and stop loss ratios.

Risk appetite globally remains strong.  However, the desire to sell the US Dollar against the Swiss Franc is not a trade only made because risk appetite is good; it is also done by many institutional investors because they believe the Swiss Franc is a good currency to own.

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Swiss Franc Short Term Outlook:

Current Resistance: 0.91250

Current Support: 0.90610

High Target: 0.91400

Low Target: 0.90150

USD/CHF

Robert Petrucci
Robert Petrucci has worked in the Forex, commodity, and financial profession since 1993. Important aspects of his work involve risk analysis and advisory services. As an advisor in a Family Office he maintains a conservative approach for wealth management and investments. Robert also works in private finance with investors and companies delivering financial and management services.

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