The US dollar has drifted a bit lower against the Swiss franc during the trading session on Friday as we continue to see a lot of noisy behavior.
USD/CHF
The US dollar has drifted a bit lower against the Swiss franc during the trading session on Friday as we continue to see a lot of noisy behavior. Ultimately, this is a market that is going to be very choppy and very noisy as we have a couple of different things moving the market at the same time. We have higher than usual US rates, but they are dropping, and at the same time, there's a lot of concern out there about the Middle Eastern headlines causing a bit of run to safety, and that is what the Swiss franc is.
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The higher rates in the United States dollar make for a profitable carry trade in this USD/CHF pair, and that will eventually cause buyers to jump in. And in fact, I've been long of this pair for quite some time, and I've added in little bits and pieces, much like in the dollar Yen over the last several months. If you do it with a low leverage situation, you can really ride out the trend, and that's what I'm hoping to do here.
Technical Analysis and Key Levels
If we could break above the 0.82 level, that opens up the possibility of moving to the 0.85 level. Dips like this look interesting to me for potential buying opportunities. It's really not until we break down below the 200-day EMA that I would be concerned, and even then, I don't know if concerned would be the right word.
We had broken above the 0.8050 level and now it looks like we continue to see support in this previous resistance level. We are on the verge of breaking out. All we need is some type of momentum.
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