USD/CHF Forecast 25/10: Steady, Eyes On 0.87 Level (Video)

(MENAFN- Daily Forex)

• The U.S. dollar has been fairly quiet against the Swiss franc during early hours on Tuesday, as we continue to see a lot of questions asked about the overall trend.
• Keep in mind that the interest rate differential does favor the U.S. dollar, and with the recent action in the bond markets, it makes quite a bit of sense that the US dollar continues to climb against the Swiss franc as the Swiss franc is considered to be a major safety currency.
• That being said, I think you also have to pay close attention to the 0.87 level because the 0.87 level is where we had seen a swing high previously. The question now is whether or not we can continue to go higher.

Short Term Pullback Possible

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A short-term pullback is most certainly possible after the PMI numbers are released. But I think you've got a scenario where the 50-day EMA and the 0.86 level is likely to be a bit of a short-term floor in the market. Then after that, we have the 0.84 level. This is a market that I think is a hard basement floor in the market. This an area that I think will continue to be important for most traders, and as a result, we are going to have to pay close attention to the level.

This is an area that's been important multiple times, and therefore it's not a huge surprise to see how we have behaved. Nonetheless, I think each dip probably offers an opportunity to pick up a little bit of value. And if we can break above the 0.87 level, then we've got the possibility of the 200-day EMA above offering a target, and anything above there actually technically flips the entire trend. I do think eventually that's what you'll see, but this is a grinding pair most of the time, so keep an eye on that.

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