USD/CHF Forecast Today 02/05: Traders Brace For NFP (Video)

(MENAFN- Daily Forex)

• We have seen US dollar strength across the board and the Swiss franc of course will be no different at this juncture.
• It looks like we are trying to do everything we can to rally a bit.
• But when you think about it, it does make a certain amount of sense that maybe a little bit of short covering is going on during the Thursday session as Friday has the non-farm payroll announcement coming, which will move the markets pretty significantly.

The 0.81 level underneath is significant support. And therefore, I think you need to pay close attention to that as we have bounced so hard from that level. That being said, the 0.84 level above is a significant barrier. And I do think that the 0.84 level is an area that previously had been support. And I do think that it becomes resistance on the way back up.

That doesn't necessarily mean that I think we have to worry about that as a shorting opportunity. Rather, I would watch very closely as to how things behave. Keep in mind that the Swiss franc is considered to be a safety currency. And while the US dollar is as well.

Top Forex Brokers1 Get Started 74% of retail CFD accounts lose money Dollar is a bit“Riskier” than the Franc

You also have to keep in mind that the US dollar is a little riskier than the Franc, especially these days. So, with that being said, I would look at this as a potential trade setting up.

EURUSD Chart by TradingView

We'll just have to see if we can continue to go above 0.84 or if we show exhaustion. It's most certainly in a downtrend and you should keep that in the back of your mind. So ultimately, I am looking forward to seeing if we wick here. And if we don't, and we just go higher, then we could go as high as 0.86.

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