Forex: USD/CHF continues on slow-motion
The USD/CHF pair continues to range gracefully in an upward channel, and has recently broken above the Ichimoku cloud. The range could continue withing the key Fibonacci levels. The recent bearish momentum in the market could get the pair to our pivot points at 0.9430 and 0.9235. A break below the pivot zone could open doors for further drops towards 61% Fibo at 0.90.
The Swiss National Bank (SNB) has recently admitted via filings that they have in fact been working against the value of Mr. Swiss Franc in the currency markets. Granted, that is probably in support of the EUR/CHF pair, but at the end of the day it has a bit of an effect in the USD/CHF pair on the forex dance floor.
Keep in mind that this pair tends to be very disconnected from a lot of other Forex pairs, simply because there isn’t a lot of trade between the United States and Switzerland, and this simply is more or less thought of as a “banking pair.” With that, this pair tends to be more or less a “risk on, risk off” type of pair, and as long as there is some type of stability, quite frankly this pair will go higher. On the other hand though, as there is fear in the European Union in general, that works against the Swiss franc as well simply because the Swiss economy is so reliant on the European Union.
Where to set your stops and limits on the Daily Chart:
|Support Levels||Turning Point||Resistance Levels|
*Important Note: The support and resistance levels are not fixed and may not be suitable for all traders. Setting your stop loss and limit orders largely depends on your account size, margin and leverage. Book a private lesson to learn how to personalize your trading strategy.