The US dollar has been very noisy against the Swiss franc on Friday, while we continue to see a lot of interest rate noise and influence in this pair. I remain bullish longer-term in this market.
USD/CHF
The US dollar has been very lively and noisy against the Swiss Franc on Friday, as we continue to see a lot of choppy and uncertain behavior. That being said, this is a particularly interesting pair for me due to the fact that the United States dollar is obviously being chased for its interest rate yield, which is much higher than most other currencies at the moment, and continues to climb. That being said, we also need to look at the fact that the Swiss Franc is considered to be a “safety currency.”
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Yield Advantages and Critical Long-Term Support
The 0.80 level underneath is potential support, as it was a potential market memory just waiting to happen. Ultimately, I do like this USD/CHF pair because you get paid to hang on to it, and over the longer term, it becomes a lucrative situation to get long.
If we break down below the 200-day EMA, then that could change some things, but right now it just doesn't look like we are quite ready to do that. Ultimately, this is a situation where sooner or later we will have to make a more definitive decision, and when we do, I believe it will probably end up being a big move just waiting to get to the 0.85 level.
Ultimately, this is a market that will remain very choppy and noisy, but as you get paid to hang on to this pair, if you are patient, it ends up being a lucrative longer-term investment. This is something that, if you are patient enough, you could find a nice trend to follow, but it will take real conviction.
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