USD/CHF fell at first on Thursday, but got a bit of a bounce as rumors of the Swiss National Bank setting negative interest rates came to light. It hasn’t be confirmed at this point, but the idea that the SNB would do it isn’t much of a stretch as they are working against the value of the Franc presently. The Dollar is still the main safety trade, and as we have so many headline risks out there – buying this pair makes total sense. If we can break the top of the range from the Thursday hammer, we would be long this pair. Because of the SNB, we can’t sell it.
Written by FX Empire