- In my daily analysis of the USD/CHF pair, I see more strength again, as this market continues to try to break out to the upside.
- This does make a certain amount of sense, considering that the US economy continues to hum right along, while the Swiss economy is surrounded by the European Union, which is a bit of an anchor around its neck.
Furthermore, one of the things that makes this currency pair interesting is that the US dollar is actually considered to be the “risk on currency” most of the time. The Swiss franc of course is considered to be one of the ultimate safety currencies around the world, but as things stand right now, the market continues to see quite of a significant amount of bullish pressure, as we are trying to go higher.
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Technical Analysis
The technical analysis for the USD/CHF exchange pair is rather strong, but there are some things to worry about. For example, the 200 Day EMA hangs around the 0.8750 level, which is an area that a lot of people will be paying close attention to.
as we have not only seen action here previously, but the 200 Day EMA of course is an indicator that a lot of people will watch for the trend to be determined.
Underneath, we have the 50 Day EMA offering support, near the 0.86 level. The 0.86 level is a large, round, psychologically significant figure, but it’s not necessarily one that has been important previously. In other words, while there might be a little bit of support there, I think the moving average probably offers more.
Underneath there, we have the 0.8550 level, which offers previous support and resistance and therefore a bit of “market memory” just waiting to happen.
Keep in mind that interest rates in America continue to spike, and that has a major influence on how the US dollar behaves. Whether or not we continue to go higher remains to be seen, but it certainly looks like the momentum is in favor of the United States at this point, and with this I think you have to simply follow what the market is doing.
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