#Swiss franc
#franc
During the day on Monday, the US dollar initially tried to rally against the Swiss franc, but got turn right back around and we ended up forming something akin to a shooting star. The shooting star of course suggests that the market is going to pull back again, and it makes quite a bit of sense as this has been an area of interest for some time. With this being the case, the market very well could break down below the 0.96 level, which of course would be a nice selling opportunity from what I see.
The 0.9525 level below has been supportive in the past, and I believe it will be again. However, the market seems very attracted to the downside and while many of you are paying attention to the EUR/USD pair, this pair is quietly making a nice sell signal. Keep in mind that the USD/CHF pair tends to be completely inverse of that market, so a lot of times when you see a potential set up in the EUR/USD pair, you are better served trading this market as the signal could be much more clear.
Swiss franc to strengthen?
I believe that we are going to strengthen in the short-term if we can break down below the bottom of the range for the day on Monday, but I don’t expect break down below the aforementioned 0.9525 handle right away. I think a lot of this has to do with the fact that we simply do not have a lot of volume at the moment as most traders are probably away at holiday. The back half of the month of August is typically fairly quiet, so in the next couple of weeks you may have to settle for short-term trades.
Ultimately though, if we break above the top of the shooting star for the Monday session, I believe them the buyers will try to push this market towards the 0.97 handle above. That would have to coincide with the EUR/USD pair falling though, which looks very well supported at the moment. With that being the case, I think a nice short-term opportunity should present itself today.