Bounces from Support Against Franc


All things being equal, I think what you’ve got is a situation where the market is going to be very noisy, so you need to be cautious, but I do think that we are in an area that is going to determine a bigger move, so, therefore, there is money to be had, it just comes down to following the market.

  • The USD/CHF bounced a bit during the trading session on Thursday to show signs of life at the major support barrier.
  • When you look at the longer-term chart, you can make an argument about this being an area that will be important, due to the fact that it had previously been resistant, and it has offered support a couple of times.
  • The question is whether or not we form some type of bottoming pattern and rally, or if we finally break down.
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A lot is riding on the 0.9350 regions, as we have seen it hold both buyers and sellers multiple times. With this being the case, I think we got a situation where you need to sit and watch, but it’s worth noting that we could not break down through there before turning around. We had a massive selloff during a previous couple of sessions, but you can also make an argument that Thursday was probably a bit then anyway, due to the fact that it was Thanksgiving in America. Friday will probably be somewhat dead as well, so keep that in mind. However, the London and European trading houses may decide to defend this area, pushing it higher. If we break down below the 0.93 level, then I would look at that as a breakdown that could have legs, perhaps sending the US dollar to the 0.91 CHF level.

Noise Ahead

On any rally at this point, it’s likely that the 200-Day EMA will have to be paid close attention to, which is near the 0.96 level. A break above there then opens up the possibility of the US dollar going all the way back to the 0.98 level. That being said, with the FOMC Meeting Minute suggesting that some members are thinking about slowing down rate hikes, that has people selling off the US dollar. That being said, the interest rate differential is still going to be astronomical, so I would not get overly excited quite yet.

All things being equal, I think what you’ve got is a situation where the market is going to be very noisy, so you need to be cautious, but I do think that we are in an area that is going to determine a bigger move, so, therefore, there is money to be had, it just comes down to following the market.

USD/CHF

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Read More: Bounces from Support Against Franc

2022-11-25 02:26:39

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