The USD/CHF pair continued to rise during the Friday session as trader shed the Franc in fears of an eventual peg to the Euro. (This was mentioned as a possibility by some members of the SNB recently.) The truth is that if it were to happen – that would be a while down the road, and sooner or later the market will go back to buying the Franc which served it so well for so long. The pair is currently testing the 0.7750 level, which was minor resistance earlier. If it breaks that area, it will then proceed to 0.8000, and then 0.8300. (Assuming it can continue to rise.) We are still selling this pair, and are waiting for that shooting star or extremely bearish candle to trigger our sell order. Until then, we wait.
Written by FX Empire