USD/CHF Forecast 21/10: Bulls Target 0.8400 (Video)

(MENAFN- Daily Forex) The U.S. dollar is looking for support on Tuesday, against the lowly Swiss franc, as rates in America are starting to cool off. Nonetheless, the interest rate differential is still wide.

USD/CHF

The U.S. dollar initially fell against the Swiss franc, but it is starting to recover a little bit as the 50-day EMA is coming into the picture to offer a little bit of support.

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Ultimately, this is a market that I think continues to look at the 0.83 level as a bit of a magnet. We continue to go back and forth here, with the 50-day EMA offering support. The 0.84 level above, I think, is a major ceiling, this is a market that I think remains somewhat range-bound

It is an interesting pair to trade at the moment, mainly due to the fact that the U.S. dollar is seeing falling rates. But given enough time, the interest rate differential still makes the dollar more competitive than the Swiss franc, which has the Swiss National Bank offering zero interest rates.

As long as that's the situation, I just don't see how that overcomes the higher rates. That doesn't mean that we don't pull back from here, but I think pullbacks continue to be buying opportunities

I have been long in this pair for quite some time and have recently added to the position. If we rally from here and break above the 0.84 level, we could go looking to the 0.85 level, but I think that takes a spike in U.S. interest rates or perhaps a major risk appetite improvement situation where people are running from the Swiss franc in general.

EURUSD Chart by TradingView

This is a long-only pair for me. It has been for months. It remains that way despite the fact that we're just hanging out during the session.

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