USD/CHF Forecast Today 12/08: Breaks Above 0.81 (Chart)

(MENAFN- Daily Forex)

• The US dollar has rallied quite nicely against the Swiss franc during the trading session on Monday, as we have broken above the 0.81 level.
• The 0.81 level has been important multiple times in the recent past, so all be paying close attention to it.
• Furthermore, if we can break above the highest price of last week, then we could have a serious attempt to break out to the upside, allowing the US dollar to really start to take off against the Swiss franc.

Tuesday CPI

During the trading session on Tuesday, we will get the CPI numbers coming out the United States which will have a major influence on what people believe the Federal Reserve will do next. Because of this, I would anticipate a certain amount of volatility, but I think we also have to keep in mind that there are a lot of questions asked about what the Federal Reserve might do in the future, and if we get a really hot number coming out on the US for Consumer Price Index readings, then it will have people betting than the Federal Reserve might have to wait even longer to cut interest rates, and that will be US dollar strength just waiting to happen. In that environment, we could very well see the US dollar grind all the way back to the 200 Day EMA, currently sitting at the 0.8423 level.

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On the other hand, if CPI comes out much weaker than anticipated, with the Core CPI reading expected to be 0.3% month over month, then we will more likely than not see the US dollar drop down, perhaps reaching toward the crucial 0.80 level. This of course is a large, round, psychologically significant figure, and an area where a lot of people would be looking to put a position on.

EURUSD Chart by TradingView

Either way, I think we are going to see a bit of noisy trading heading into the next couple of sessions. Remember, you do get paid to hang on to this trade via the swap at the end of each session, and that is something to pay close attention to.

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