The USD/CHF pair fell hard during the session on Friday, as the Nonfarm Payroll numbers came out about half of what was anticipated for the month of March. With that, I feel that this market could very well continue lower, but I recognize that the 0.95 level is in fact a significant support barrier based upon the large round number, the 38.2% Fibonacci retracement ratio, and of course the previous resistance that we had seen there. With this, I am a bit hesitant to sell in this general vicinity. If we get some type of supportive candle, I am more than willing to start buying though as it would continue the move that we’ve seen recently. After all, we just about wiped out the entire negative candle from the Swiss National Bank meltdown.
Looking for support
I continue to look for support, as I recognize all the way down to the 0.9250 level you will see all kinds of supportive action. A supportive candle between here and there is reason enough to start buying, just as a break above the highs from the Friday session would be. If we do break down below the 0.9250 level, I think that the market should head to the 0.90 handle which course of the next major region as far as numbers are concerned.
But we do rally, I feel that the market will more than likely head to the 0.98 handle next, where we had formed to shooting stars previously. If we get above there, we should then go to the parity level, and then possibly even as high as the 1.02 level. We get above there, then becomes a buy-and-hold situation yet again. We will have to see what happens and I believe that more than likely we will have to see the rest of the Swiss franc related pairs go much higher at the same time, as it would have to be a Forex wide move in my opinion.
