Forex Marketz Daily Forex News – Fully Markets Update
USD/CHF (0.9599)
- Resistance Levels: 0.9695, 1.0125, 1.0252
- Support Levels: 0.9427, 0.9212, 0.8998
- Trade Strategy: Stand Aside
The US Dollar continues to look weak against the Swiss franc after falling below the 0.97 pivot. Please see the below daily MT 4 chart, note the Dark Cloud candlestick and subsequent move lower.
For today, near-term support is lining up at 0.9427 with a daily close below this level challenging the next technical support at 0.9212. A daily close back above the technical resistance level at 0.9695 will challenge the congestion zone at 1.0085 to 1.0126. This level is also the support turned resistance level and former trend line support.
Most would enter a short now, especially looking only at technical analysis. However, I am going to stand aside because the overall USD/CHF outlook remains bullish. The favorable Federal Reserve outlook couple with the current Swiss National Bank (SNB) policy calls for a strengthening of the Dollar. Therefore I will look for a more favorable long Dollar trade instead of going short.
