USD/CHF Signal 11/09: US Rate Edge Supports Bullish Bias

(MENAFN- Daily Forex) Potential signal:

On a CPI reading over 0.2% (Core CPI m/m) in America, I am buying this pair, with a 100-pip stop. If it is strong enough, I am looking for 0.8450 above. The US dollar rose against the Swiss franc on Thursday, as we continue to see rates rise in the United States. On the other side, we have the Swiss National Bank holding tight to 0% rates.

USD/CHF

The U.S. dollar has rallied during the trading session on Thursday, spiking toward the 0.8150 level. The 0.8150 level has offered a bit of a barrier over the last couple of months, but when you look at this pair, the one thing that I think of first is the interest rate differential that favors the U.S. dollar.

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

This is a market that is balancing between higher rates in America and the fact that we had recently seen a little bit of a surprise coming out of Switzerland in the form of GDP hotter than anticipated, as well as inflation, mainly driven by energy, of course. At this market level, I think that you have a lot of people willing to step in and buy dips above the 0.8150 level could open up a move to the 0.82 level.

If the market were to break down below the 50-day EMA, it's also possible that the market could even drop down to the 200-day EMA just above the 0.80 level. This is a market that is very noisy and very choppy, but the whole point of this currency pair is to get paid at the end of every day.

It's a nice carry trade situation, and with the Swiss National Bank seemingly having no interest whatsoever in raising rates, then I do think that makes this an easier long to take in favor of the U.S. dollar than you see in multiple other currency pairs.

EURUSD Chart by TradingView

We've recently seen a nice run higher. The question is, can we break to a fresh new high near the 0.82 level? Ultimately, this is a market that's right on the precipice of a potential breakout to the upside, perhaps targeting 0.85 over the longer term, but right now, a lot of patience will be needed.

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

MENAFN11092026000131011023ID1111651105