- The US dollar has gotten pummeled against the Franc during the trading session on Friday, but I don't think there's a lot to see here other than a pullback that is heading towards significant support underneath.
- So, with that being said, I think you have a situation where we have to pay pretty close attention to the 0.89 level.
- This is an area that had previously been a pretty significant barrier, but even if we break down through there, I see a lot of support all the way down to the 0.88 level.
The 50 day EMA and the 200 day EMA just crossed to the upside. And now it looks like the so called golden cross has formed. The 0.88 level is also a significant support level if we break down below there, then things change. But right now, I just don't really see that as being a likelihood at least at this point, this is especially true with the interest rates in America so much higher than the Swiss interest rates.
Swiss National Bank
The Swiss National Bank has recently cut rates by 50 basis points. So, with that being the situation that we're in, I think Switzerland is very possibly thinking about going negative with their rates. And if that's going to be how they play things out, it will be toxic for the Franc. So, I'm looking for some type of bounce here to get involved in in order to start buying again. I want to see the USD/CHF market flip back around to the upside and take advantage of that momentum. If that happens, I will not hesitate to buy US dollars, as I believe it will continue to be the favored currency for early next year.
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