I am watching the Swiss franc closely, as we are in the process of trying to find the bottom. With this, the pair continues to move on the 10-year yield in America, and the possibility of SNB intervention.
USD/CHF
The US Dollar has rallied a bit during the trading session on Tuesday as we are breaking through the 0.79 level as I am recording this video. That being said, the market is between the 50-day EMA underneath and the 200-day EMA above and that does cause a little bit of squeezing at times.
All things being equal, there is a little bit of market risk-on behavior here in the sense that there is the pause in the idea of Trump destroying the Iranian infrastructure. But there's much bigger things going on here to begin with. The 10-year yield in the United States has hit 4.39%. Meanwhile, the Swiss National Bank is staying as close to 0 as they possibly can. Furthermore, the Swiss National Bank is very likely to intervene if we see the Swiss Franc strengthen too much.
MARKET TRENDS AND TARGETS
So, with that being said, I think as long as the rates in America stay healthy and strong, it's only a matter of time before we break towards the 0.80 level and the 200-day EMA. If we can break above there, then the Dollar continues to rise.
I do think that we're getting close or maybe have already seen the actual bottom in this pair for quite some time and the yield play most certainly is coming back into the picture. If we see a drop in US yields due to a good headline coming out of the Middle East, we might see a short-term drop here, but that would be something I'd be more than willing to step in and start buying.