USD/CHF Forecast Today -22/01 US Dollar Continues To Chop

(MENAFN- Daily Forex)

• During the trading session on Tuesday, we have seen the US dollar chop back and forth against the Swiss franc, as we continue to bounce around just below the 0.91 level. At one point, the market had tried to break above there but turned back around, showing signs of hesitation.
• By doing so, the market looks as if it is doing everything it can to sort things out to the upside. However, there are a lot of questions when it comes to the outlook for the United States because although it will more likely than not be strong, the reality is that the interest rate situation is still something that people will be monitoring.

Technical Analysis

The technical analysis for this pair is rather strong, but we are a bit overstretched. It's also worth noting that the 0.92 level is an area that is crucial, as it is a major round figure, but it's also an area where we have seen a lot of action in the past. Quite frankly, if we can break above the 0.92 level, I think the US dollar will absolutely crush the Swiss franc over the longer term. At that point, it looks as if there is a huge air pocket just above, we could see the US dollar trading at parity before we know it.

On the other hand, if we turn around and fall from here, the 0.90 level is an area that we need to pay close attention to. That area is backed up by the 50 Day EMA sitting just below it, so you need to be cognizant of that as well. However, you should also keep in mind that the market will continue to be very noisy nonetheless, mainly due to the fact that even though the US dollar is so strong, people still look to the Swiss franc for safety. In the end, I believe this is a“buy on the dips” market just waiting to happen.

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