The USD/CHF pair has been fairly quiet over the last couple of sessions as the markets are looking for clues as to the next move by a couple of central banks. The Federal Reserve is expected to possibly ease further, and this has weighed upon the value of the US dollar over the last couple of sessions. The move hasn’t been very deep though, and as a result it looks as if the market is almost consolidating as it hasn’t fallen for a significant about over the last couple of sessions.
The Swiss Franc will be sold off as long as there are hints of in Europe. The Swiss send over 85% of their exports into the European Union, and as a result the Swiss economy will suffer as long as the European one is as well. The fact that the country is so dependent on the Europeans is a bad position to be in at the moment, as the “safety trade” could provide a bit of a lift for the value of the Franc, but only somewhat. The Dollar should continue to gain strength as long as there are the dame fears as we have seen lately.
Pullbacks to be bought
As long as the trend keeps up, I am buying this pair on supportive candles. The USD/CHF pair tends to move in opposite directions of the EUR/USD, and the EUR/USD pair should continue to be bearish overall. The USD/CHF pair is currently just above the 0.95 support level, and I believe that if we see supportive candles in the area that it makes sense to go long at that point in time.
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The Dollar should continue to remain strong overall as long as the problems in the global economy continue. The inability of the global central banks to stem the tide of global concerns should continue to force traders back into the Dollar overall, and as a result we are very hesitant to sell the Dollar in general. The selling of this pair isn’t something I consider until we see a daily close below 0.93 or so.