USD/CHF Forecast Today 17/12: Theatens A Move Higher (Video)

2024-12-17 02:22:17

(MENAFN- Daily Forex)

The US dollar initially fell against the Swiss franc in early trading on Monday, but then turned around to show signs of life again.
The dollar is pressing up against the 0.8950 level, an area that has been important multiple times, and therefore it's not a huge surprise to see that we're just somewhat stagnant here.
However, when look at the charts overall, the US dollar continues to be a major winner in the FX markets.

If we were to break above that level, it's likely that we could see the market continue to go higher, perhaps reaching the 0.9050 level. The shape of the candle does suggest that we are trying to continue to rally and that there is a lot of pressure there just waiting to get involved. Even if we were to pull back, I think there is plenty of support all the way down to at least the 0.88 level.

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The 50 day EMA is getting ready to cross above the 200 day EMA just below that level, kicking off the so-called golden cross. So, I think longer term traders will also be looking at that as a potential sign to get long for a bigger move. I do think that the interest rate differential between the United States and Switzerland will continue to push this USD/CHF pair higher despite the fact that the Federal Reserve is likely to cut interest rates 25 basis points this week.

EURUSD Chart by TradingView

After all, the Swiss just cut by 50 basis points last week in a bit of a surprise move, so I think that shows that the Swiss are possibly even thinking about going negative before it's all said and done. It's something they've done before, so it's not out of the realm of possibility. I like buying dips. I have no interest in shorting the US dollar, especially against the Swiss franc.

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