Affiliate Disclosure
Affiliate Disclosure DailyForex.com adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.

USD/CHF Forecast: Attempts to Break Higher

By Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.

The next couple of days will probably be very noisy, but it’s certainly an area where I’d expect to see a lot of potential support, and with the Federal Reserve announcement coming on February 1, we could get a shock to the system. 

  • The USD/CHF rallied a bit during the trading session on Tuesday, showing signs of life as we broke above the 0.9250 level.
  • However, we turned around to show signs of exhaustion again, so I think we got into a situation where we continue to struggle for footing.
  • Nonetheless, we are in an area that I find very interesting, so I will be paying close attention to this pair.

If we can break above the 0.93 level, then it’s likely that we would go looking to the 50-Day EMA, maybe even 0.95 handle. Ultimately, this is a market that is going to have to make a decision rather soon, as we are at a major support level going back ages. The 0.91 level has been important, just as a 0.90 level will be important from a psychological situation, and of course, the previous action in that area could come into the picture. It’s worth noting that we had formed an expanding megaphone pattern, which is typically a pattern that people will see when we are about to perhaps change directions.

Choppiness Ahead

The next couple of days will probably be very noisy, but it’s certainly an area where I’d expect to see a lot of potential support, and with the Federal Reserve announcement coming on February 1, we could get a shock to the system. After all, a lot of people are suspecting that the Federal Reserve is going to loosen its monetary policy, and really slow things down. While it might slow things down, the reality is that the Federal Reserve has been screaming that they are going to keep rates very high, and it’s possible we could head into a recession. This typically is good for the US dollar, because most people around the world will feel it as well, and therefore it’s likely that we would see a lot of negativities around the world, and that typically has people buying US Treasuries going forward.

The market is likely to continue seeing a lot of noisy behavior, and that’s probably the most important thing to pay attention to. You need to see some type of impulsive candlestick to really put money into the market, regardless of which direction it is. I think the next couple of weeks will probably be a lot of back-and-forth choppy behavior, so therefore keep in mind money management is going to be crucial.

USD/CHF

Ready to trade our Forex daily analysis and predictions? Here are the best Forex brokers to choose from.

Christopher Lewis
About Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.
 

Most Visited Forex Broker Reviews