USD/CHF Forecast Today 02/01: USD/CHF Grinds Higher (Chart)

(MENAFN- Daily Forex)

• The US dollar rose against the Swiss franc again as traders are looking forward to the New Year's celebration.
• Ultimately, one would have to assume that there is a significant lack of volume in the market, as most traders are focusing on the holidays and not so much on the currency markets.

That being said, the thing I like about this pair the most is that it has a clear range that we have been in for multiple months now, as the 0.79 level continues to be a bit of a floor while the 0.8150 level continues to be a bit of a ceiling.

Top Regulated Brokers1 Get Started 74% of retail CFD accounts lose money SNB Intervention Risks

Furthermore, we also have to keep in mind that the Swiss National Bank has flat out said that they do not appreciate the Swiss franc rising the way it has, and I think you've got a situation where traders will be looking at this for some type of signal to go long. After all, if the central bank is fighting the market and the SNB is well known to do exactly that, there is the real possibility of intervention.

At the very least, I think there's a bit of an unofficial floor near the 0.79 level. This is great range-bound trading for those who are patient because this pair does not move very quickly, but it does, in fact, feature a positive swap if you are buying dollars and selling francs.

Because of this, I continue to buy the dip, and I look to it for gains of about 100 to approximately 150 pips, and then I'll close out my position. I have no interest in shorting this market, and if we were to break down below the 0.79 level, then we could see this market drop pretty significantly, only to see the central bank get involved again, so be aware of that as well.

EURUSD Chart by TradingView

Ready to trade our daily forex forecast? Here are the best online trading platforms in Switzerland to choose from.

MENAFN02012026000131011023ID1110548709