- The US dollar has pulled back slightly against the Swiss franc during the Friday early hours, but that's not a huge surprise considering that we are shortly extended over the last couple of days.
- And I think the 0.81 level will continue to be important. What I have noticed though is that the US dollar continues to strengthen against almost everything. And with that being the case, you've got a situation where we are trying to form some type of bottom. This pair might be a little trickier than many others because quite frankly, both are safety currencies. Now, what TradingView can't show you is a few decades ago, we were down here and there is a little bit of potential market memory.
Massive Barrier Above
But I think ultimately, I have got to look at this as a market where if we can break above the 0.81 level, then the 200 day EMA will probably get targeted. Short term pullbacks open up the possibility of a move down to the 50 day EMA, which happens to be the 0.80 level. You do get paid to hang on to this trade. So that’s what I'm going to do for now. As swap at the end of the day is positive. It's really not until we break down below the 0.79 level that I'd be concerned. Although I don't want to say that I'm overly bullish as currency pair, I just recognize that the US dollar is trying to bottom here, it is strengthening against other currencies. But against the Swiss franc, this will be like a slow motion move. That's not too out of norm for this anyway. So I'm not really concerned about it. think you've got a situation where you might be able to find a little bit of value on dips. And if you are patient enough, this could pay off pretty big. After all, I see a world where we get to 0.88. But that might be summer next year or even fall. My name's Chris. I work for FX Empire. If you enjoyed the video, give me a thumbs up and subscribe to the channel for more analysis.
Top Forex Brokers
Ready to trade our daily Forex analysis? We’ve made a list of the best forex trading accounts worth trading with.