(MENAFN- Daily Forex) Potential signal:

• On a move above the 0.81 level, I am a buyer of this pair for a longer-term swing trade and aim for the 0.86 level, with a stop loss at 0.7980 below.

The US dollar has been consolidating against the Swiss franc for a while, as we are trying to find some type of bottom. All things being equal, this is a market that I think will continue to be noisy, which makes sense considering that both of these currencies are considered to be“safety currencies.” The market of course will continue to look at the idea of risk appetite and trying to gauge where this pair goes. During the session on Tuesday, we have seen a little bit of a given back by the US dollar against other currencies, so the Swiss franc of course won't be any different.

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The technical analysis for this pair is sideways at the moment, as we are hanging around the 50 Day EMA, which is also sitting at the 0.80 CHF level. I think this is essentially“fair value”, as we had been bouncing around between the 0.80 level on the bottom, and the 0.81 level on the top. Ultimately, this is a market that I think will eventually try to make a bigger decision, but I believe at this point the US dollar continues to be very intriguing, as it has been fighting against most of these currencies, and the Swiss franc, albeit a safety currency and strong, won't be any different. I think this means that the US dollar will eventually break out to the upside, but it will be a much slower move than other currency pairs.

EURUSD Chart by TradingView

I look at this as a situation where we are trying to sort out longer-term moves, and it could be very noisy in the short term. At this point, if we can break above the 0.81 level, then I become much more bullish of the US dollar, just as if we break down below the 0.79 level, then I become much more bearish of the US dollar, at least against the Swiss franc. We will have to see how the US dollar behaves against other currencies, but I think we have a scenario where short-term traders will continue to go back and forth.

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