USD/CHF Forecast Today 31/01: USD Breaking Higher? (Video)
Date
1/31/2025 4:17:58 AM
(MENAFN- Daily Forex)
The US dollar has rallied a bit during the course of the early part of Thursday, but at this point in time we are trying to sort out whether or not this market can break above the crucial 0.91 level. The 0.91 level has been important multiple times, and I think it will continue to be so. Therefore, if we break above there, it's likely that we could see more FOMO trading in this market as the US dollar could climb towards the 0.92 level.
That being said, if we can finally get above the 0.92 level, that would be extraordinarily bullish for this USD/CHF pair. I think it allows the market to go looking at the parity level over the longer term.
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Short-term pullbacks, I think, will continue to be buying opportunities with the 0.90 level underneath offering a bit of support, especially as we have the 50-day EMA hanging around the same area. So, I think that is the floor in the market at the moment. Ultimately, this market is likely to attract value hunters over time, especially given the interest rate differential between the U.S. dollar and the Swiss franc. Not long ago, the Swiss National Bank cut interest rates by 50 basis points in a move that seemed somewhat panicked.
EURUSD Chart by TradingView
If that continues to be the pattern, where you have the Swiss very dovish and the Federal Reserve in a wait and see mode, it makes a lot of sense that over the longer term, this pair continues to climb as traders get paid at the end of every day to hold it via swap. I think that makes this a bullish market longer term.
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