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MENAFN- Daily Forex)
- The US dollar pulled back just a bit during the trading session on Friday, but it looks like the buyers are returning to just below the 0.91 level. \
- This is a market that has shot straight up in the air like a rocket.
- After all, the Swiss National Bank had cut interest rates by 50 basis points, in what most people would assume is a little bit of panic.
At the same time, the Federal Reserve is unlikely to cut rates very much next year. According to the Federal Fund's futures markets, we are looking at a total of 50 basis points cut in America for the entirety of 2025, with the first one coming in May and the second one coming in December.
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In other words, this USD/CHF pair is going to continue to pay you at the end of every day. Short-term pullbacks for me are buying opportunities. I do recognize in this area, we are testing a very significant resistance barrier, and I think it's probably only a matter of time before we clear it. If and when we break the 0.92 level, that opens up a massive move to the parity level. That's 800 pips. And that's a big deal when you're talking about the dollar against the Swiss franc. You also get paid at the end of every day. So, this is a trade you want to be involved in if it kicks off. In the meantime, a short-term pullback could offer a little bit of value that people are willing to take advantage of with the 0.90 level underneath, offering a bit of support and 0.89 underneath there being even more important.
We recently had the so-called Golden Cross when the 50 day EMA crosses above the 200 day EMA and it looks like we're ready to continue going higher, but we are a little bit stretched in the short term. So be aware of the fact that this is a market that could find a little bit of exhaustion, but I believe plenty of people out there will be willing to jump off.
EURUSD Chart by TradingView
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