USD/CHF Forecast Today - 26/09: USD Bounces Vs Franc (Chart)
Date
9/26/2024 2:51:23 PM
(MENAFN- Daily Forex)
I notice that we have added a lot of strength show up in the favor the US dollar, as we have bounce from a crucial level in the form of the 0.84 level. That being said, the market is likely to continue to see a lot of noisy and choppy trading in this region, with the 0.84 level underneath being a floor, as well as the 0.8550 level above offering significant resistance. Quite frankly, this is a market that is essentially sideways and is going to continue to be that way going forward.
The size of the candlestick does suggest that perhaps we will continue to see buyers jump into this market, but I don't think that necessarily means that we are going to break out immediately. Quite frankly, we need to see a daily close above the 0.8550 level, and perhaps even above the 50 Day EMA. Breaking above that level then opens up the possibility of a much bigger move.
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Both of these currencies are considered to be safety currencies, so therefore you need to keep this in mind. Having said that, the Swiss franc is considered to be“safer” than the US dollar, although the US dollar is not necessarily considered to be a“risky currency.” With that being said, if we do get more“risk on behavior”, that could send this pair much higher. After all, the Swiss National Bank has extraordinarily low interest rates, but at the same time we have the Federal Reserve which has cut rates by 50 basis points recently, which has sent a bit of a shudder through the US dollar in general.
I think more likely than not, we are going to see a lot of back and forth choppy behavior, but I also would make an argument that perhaps we are trying to form in some type of bottoming pattern, which of course is an area that I think was important previously, so I'm definitely looking to see if there is some type of reason to go higher.
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