USD/CHF Forecast Today 07/02: Eyes Breakout (Video)

(MENAFN- Daily Forex)

• The US dollar has risen in the early hours of the Thursday session as we continue to see more of an upward trend to come into play.
• If you were here yesterday, I suggested that this was an area that could offer a bit of a bounce, and so far that's working out, but you should also keep in mind that the jobs number is coming out on Friday, so you have to be very cautious about getting overly aggressive here.
• I do think that the interest rate differential will continue to be a major story here with the Europeans struggling.

Now we've had the British come out, cut rates and suggest that there was more coming. So it's spreading around the entire continent. With that being the case, Switzerland is going to feel the brunt of this because they cut 50 basis points last time they met, and 85% of their exports go into the European Union. So, it's not as if they have trading partners that are going to be as reliable.

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With that being the case, I do plan on taking advantage of any dip in this pair. And if we can break above the 0.92 level, this is a market that I think could go all the way to parity before it's said and done. If that happens, you're going to see the US dollar swallow everything, except for maybe the Japanese yen. The Japanese are starting to find a bit of inflation and that might make the yen a bit of an outlier, but all of these European currencies could be in trouble. We'll just have to wait and see. The 0.92 level is the most obvious spot on the chart. So, if we break above there, not only will I get long of this pair, but I'll probably be pretty aggressive. If we were to break down below 0.90, then I'll focus on the 0.89 region, or a potential buying opportunity, anything underneath there, then you start to question whether or not this move is done and we aren't going any higher, but right now, not on the radar.

EURUSD Chart by TradingView

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