Traders look likely to continue to see a bit of bullish behavior, but the range continues to contain the moment.
The US dollar rallied a bit in trading on Friday again as the non-farm payroll announcement, oddly enough, was weaker than anticipated, but this has seen the US dollar strengthen. Perhaps traders are starting to look to the US dollar as a bit of a haven, but against the Swiss franc, it is a whole different world.
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After all, the Swiss National Bank is very concerned about the strength of the Swiss franc, and both of these are considered to be safe assets, so keep that in mind. We are above the 0.80 level and basically in the middle of the overall consolidation. If you have been following my work here at DailyForex for a while, you know that I treat this pair as a nice range-bound opportunity.
Technical Levels and Market Outlook
That being said, if we can break above the 200-day EMA, that would change the outlook, and it would get very bullish, just as if we could break down below the 0.7850 level. This is a market that could fall apart, perhaps driving the Swiss National Bank to jump into the market and try to intervene. After all, they have made a couple of comments about watching the forex market, so I think everybody out there knows the story.
If we were to break above the 200-day EMA, and I do not expect that to happen quickly, we could be looking at the 0.85 level. As things stand right now, I like buying short-term dips because, of course, you do get paid at the end of every day due to the interest rate differential between the United States and Switzerland.
Ultimately, this is a market that I think, given enough time, probably does break out to the upside, but when it happens, we do not know. This has been going on since July, and really despite the fact that the last four or five days have been pretty good, nothing has genuinely changed. So if you are a range-bound trader, this is your world right here.
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