(MENAFN- Daily Forex)

• The US dollar continues to firm against the Swiss franc as the pair holds support near 0.79.
• With a broad range still intact and global liquidity concerns favoring the dollar, traders are focusing on buying dips unless 0.7850 breaks.

The US dollar rose against the Swiss franc during the trading session on Monday, as we have seen quite a bit of support underneath. The market has been in a range for quite some time, with the 0.79 level offering a bit of a floor, with the 0.81 level being significant resistance. It's worth noting that the 50-day EMA sits at the 50% section of this overall consolidation range, right at the 0.80 level. In other words, I think this is a market that continues to see a lot of questions asked of the market as to whether or not it is bottoming. And you can make an argument that July was the beginning of a massive bottoming pattern or at least an attempt to build one.

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And if we break out to the upside, this will end up being a classic accumulation pattern. It'll be interesting to see how this plays out as the U.S. dollar will more likely than not rise not only here, but other currencies as we see the possibility of a little bit of a liquidity problem underneath the surface around the world. And that, of course, favors the U.S. dollar in general.

EURUSD Chart by TradingView

I have no interest whatsoever in shorting this pair. But if we were to break down below the 0.7850 level, I think the bottom could fall out. The biggest problem, of course, is that you have to keep in mind that the Swiss National Bank has made a few comments as of late that they are not amused by the strength of the Swiss franc. And that could really come into play here, perhaps causing a bit of panic if we dip too far. And they could throw their weight into the currency markets. All things being equal, I think we're still in the range. We're at the bottom of the range. Therefore, short-term traders will be looking to buy this dip.

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