USD/CHF Forecast January 4th, 2012, Technical Analysis

USD/CHF fell hard on Tuesday as another round of “everything is suddenly alright” seemed to hit the markets. The Dollar got sold off, but as we have seen several times recently, these are simply opportunities to buy the Greenback at a cheaper rate.

The 0.93 level held as support, although the candle was in fact very bearish. The level should continue to show strength however, as it was the site of a serious breakout a few weeks ago. The 0.95 level will of course be very resistive, so this pair could consolidate going forward. We expect the pair to be bias to the upside, but a grind, not a run straight up. We are not willing to sell this pair currently, but would have to reconsider our opinion if we can fall below the 0.9150 level.

USD/CHF Forecast January 4th, 2012, Technical Analysis

Written by FX Empire