USD/CHF Forecast 16/10: Dollar Dip Offers Value (Video)
(MENAFN- Daily Forex) The U.S. dollar continues to see choppiness on Thursday against the Swiss franc. At this point, with falling rates have worked against the U.S. dollar early in the day, but this is a short-term phenomenon.USD/CHFThe U.S. dollar has fallen fairly significantly against the Swiss franc during the early part of the trading session here on Thursday as interest rates in America continue to fall. That helps the idea of the carry trade unwinding, but let's be honest, this is a short-term dip.Top Regulated Brokers1 Get Started 74% of retail CFD accounts lose money The interest rate differential between the United States and Switzerland is still big enough to drive a truck through. With that being the case, and the fact that the Swiss National Bank has no interest whatsoever in trying to tighten monetary policy, it all leads to a higher U.S. dollar eventually. But ultimately, I am more than comfortable buying this dip and adding to a position that I've been in for quite some time.Today was a little differentWe have seen a little bit of change in behavior during the trading session, and that probably makes a certain amount of sense, as traders are starting to look at the U.S. dollar through a different prism. But ultimately, I am more than comfortable buying this dip and adding to a position that I've been in for quite some time.The 50-day EMA is down at the 0.8211 level and is rising. That could offer support. I recognize that we are a little bit extended, and ultimately, that is something that continues to see a lot of questions asked about whether or not momentum can continue.I do not want to own Swiss francs regardless, even if this market starts to fall. I'm not willing to pay the swap at the end of the day, and therefore, I look at this as a market that is long only. If I get a bounce, then I start to buy to add to my already existing position.My attitude would change if we broke down below the 50-day EMA. I'd probably be hands-off and exit the market completely.Ready to trade our daily forex forecast? Here are the best online trading platforms in Switzerland to choose from.
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