USD/CHF Signal Today - 07/10: USD Recovers Vs CHF (Chart)
Date
10/7/2024 2:47:32 PM
(MENAFN- Daily Forex) Potential Signal:
At this point, if we can break above the high for the Friday session, I'm willing to put a small position on and aim for the 200 Day EMA. I would have a stop loss at the 0.85 level.
During the trading session on Friday, I noticed that the USD/CHF pair looks very strong, as we have broken above the crucial 0.8550 level. This is a market that will continue to be worth watching, because it gives you an idea as to how the market is“feeling” due to the fact that the Swiss franc is one of the few currencies around the world that is considered to be a bigger“safety currency” than the US dollar.
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Ultimately, it's also worth noting that recently we have tested a major support level, and it does look like it has held. This was crucial, because the Swiss National Bank doesn't hesitate to get involved and intervene in the markets that the Swiss franc it's too strong. With that being said, this releases some of that pressure due to the fact that the Swiss franc has shown itself to finally give up some of its strength. Furthermore, the session has seen the Non-Farm Payroll numbers come out hotter than anticipated in the United States, so it does make a certain amount of sense that we would see the US dollar strengthen overall anyway Analysis
The Friday candlestick has pierced above the 50 Day EMA indicator, one that a lot of people pay close attention to. By doing so, it looks as if the momentum is starting to shift drastically to the upside but don't get it wrong here, we still have a lot of work to do to see a continuation of the overall upward trajectory. As things stand right now, I see a significant amount of resistance near the 0.8750 level, which is also where the 200 Day EMA is rapidly approaching.
Short-term pullbacks at this point in time should continue to attract a certain amount of attention, as there is now a major“cluster of action” below current trading that extends all the way down to the crucial 0.84 level. As long as we can stay above the 0.84 level, there is still a significant chance that the market can turn things around and rally. If we were to break down below that level, at that point in time you have to wonder where the floor is and whether or not the Swiss will get involved?
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