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MENAFN- Daily Forex)
The US dollar has gone back and forth against the Swiss franc during the session on Thursday, but at this point, cannot break above the 0.79 level.
The US dollar has gone back and forth against the Swiss franc during the trading session on Thursday as we sit just below the 0.78 level. The 0.78 level has been both support and resistance multiple times over the last couple of weeks and as a result, I think we are on the precipice of making a bigger move, but the question of course will be whether or not we continue the downtrend or if we turn around and rally to head back into consolidation.
Keep in mind that the Swiss National Bank is very concerned about the strengthening Swiss franc and is jawboning the Swiss franc back down. We'll have to wait and see whether or not they actually do anything and it's probably likely that we will see the Swiss make their decision on whether or not to intervene based on the Euro against the franc, not necessarily the US dollar. But having said that, it does have an influence on Swiss exports globally.
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EURUSD Chart by TradingView
So, with all of that, I think you need to watch whether or not the Swiss National Bank continues to get irritated by this and eventually turn the market around. I do think that collecting swap at the end of every day is still a way you can play this market, but it's also in the process of trying to find its floor. We had consolidated for several months, and I had done that exact trade for a while and I'm looking to get involved in it again.
If we break down from here the 0.76 level could be a bit of a floor and a potential target for a short sale, but really at this point in time, I still prefer the upside. I just need to see either momentum breaking above the 0.78 level or some type of pullback and a bounce that I can start buying the right-hand side of the V if and when it occurs.
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