USD/CHF Forecast Today 27/11: Eyes 0.90 Amid Strength -Video
Date
11/27/2024 2:41:32 PM
(MENAFN- Daily Forex)
The US Dollar has fluctuated against the Swiss Franc, but over the past few months, it has quietly rallied, likely slipping under the radar for many observers. This currency pair is particularly intriguing because, despite the federal Reserve cutting rates, U.S. bond markets remain unaffected, with American interest rates continuing to climb. Meanwhile, the Swiss Franc, known as a safe-haven currency, offers extremely low interest rates, making it a prime candidate for carry trades.
Furthermore, we have to worry about a land war in Europe, and while Switzerland is considered to be safe and neutral, the reality is a lot of people will want to get their assets as far away from that as possible. Crossing the Atlantic into an economy that is actually outperforming most others makes a lot of sense. So not only do you get paid at the end of every day to hang on to this USD/CHF pair , but most people are actually trading this pair to move money out of Europe and into North America.
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In fact, you can see the Canadian Dollar, although not as strong, showing somewhat similar trends against the Swiss Franc. It had a little bit of a pullback, but it looked well-supported. I think people would rather just put money in North America right now. The difference between Canada and the United States is this: the United States has advantages above Canada, so it will continue to attract most of the money.
I do think that we're in a bit of a consolidation phase, though, because breaking above the 0.88 level, and the 200-day EMA, took quite a bit of effort. Short-term pullbacks, I believe, continue to offer buying opportunities, and it's very possible that we eventually get to 0.90 Swiss Francs. After that, you'd be looking at 0.92, and at that point, I think you have massive resistance.
I have no interest in shorting this pair anytime soon, as the momentum remains strong, and the fundamentals back up the US Dollar's dominance over the Swiss Franc.
EURUSD Chart by TradingView
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