As of this writing the USD/CHF is near the 0.98300 mark which is a relatively high value, but slightly under highs demonstrated late last week when 0.98600 was flirted with on Thursday and Friday. While this morning’s trading has registered a lower depth certainly, price action today will be under the shadow of a banking holiday within the U.S, which will limit the amount of transactions. However, taking into the consideration the amount of volatility in the USD/CHF currency pair and global Forex recently traders should not be too relaxed.
July Resistance Levels in Sight and Contemplation of Highs being challenged
The Swiss Franc is considered a safe haven hedge against nervous sentiment, but even it cannot trade in a vacuum. The USD/CHF traded near the 0.98600 mark on the 12th and 14th of July, and a high of nearly 0.98885 was displayed on the 14th of that month too. If traders believe that is as high as the USD/CHF can climb, they should take a look at three month charts and note the USD/CHF actually traded above 1.00000 in the middle of June. The highs in June touched the highs of May.
The fact the USD/CHF is still below the high of July which, yes, was traded only momentarily, and remains well below high realms from May and June of this year is intriguing. There will be a definite amount of doubters regarding the ability of the USD/CHF to continue to climb to new highs, but throughout Forex the USD has been strong against many major currencies and caused those wagering against it to lose plenty of money.
- Labor Day U.S holiday could cause a lull for a moment in the USD/CHF, but volatility is likely to be seen again near term as traders return in mass from the last of their summer holidays tomorrow.
- Resistance levels near the 0.98400 to 0.98500 should be monitored closely by traders in the short term.
USD/CHF is Intriguing as it Moves Near Highs and Awaits more Trading Volume
USD/CHF Traders should be careful today and recognize the holiday trading mode could vanish without any advance notice. As the USD/CHF stays within sight of resistance speculators who choose to be bullish and pursue the upwards trend cannot be blamed. Conservative traders may want to wait for momentum to flirt with the 0.98400 to 0.98450 levels before buying and looking for quick hitting take profit orders near resistance of 0.98500 to 0.98600. If the USD/CHF were to sustain higher values today, it could be another bullish signal for the near term.
Swiss Franc Short Term Outlook:
Current Resistance: 0.98350
Current Support: 0.98150
High Target: 0.98725
Low Target: 0.97850
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