Potential signal:
- I am buying this pair in small increments every time it drops.
- I would look for a bounce first, then do it.
- I collect swap and profit along the way, closing just under 0.81 above.
- Stop would be under 0.79 below.
The US dollar has fallen significantly against the Swiss franc on Monday, losing about 0.7%, but I look at this as an opportunity. In fact, we are starting to see a little bit of a bounce. Let's remember that it was Martin Luther King Jr. Day in the United States, so a certain amount of liquidity was gone anyway.
Top Regulated Brokers
But this pair is different than many others, and I do read your comments about how it doesn't move much, but that's the point. This is a dividend-collecting machine. I buy this pair to get paid at the end of every day, let it get a little bit expensive, dump it off, let it fall a bit, and buy it again.
Well-Defined Range
This is one of those times when it starts to drop. I don't put a huge part of my portfolio in this pair, but it's hard to ignore the fact that we are now in month 6, going into month 7 of the well-defined range. We have the Swiss National Bank out there keeping this market somewhat propped up, and I think that is worth paying attention to, as they have flat out stated that they are watching Swiss franc strength.
The US dollar is falling on a holiday that has also featured some noise about trade tension between the United States and Europe, but we'll have to see how the United States behaves. There's a very real possibility that on Tuesday, we see the Americans come back in and short the Swiss franc because, the US economy is perfectly fine and is stubbornly strong.
As the Federal Reserve, which has done a couple of cuts, but really at this point in time finds itself struggling to justify too many more. The Swiss, on the other hand, are basically at 0 and will stay there.
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