USD/CHF Forecast February 3, 2012, Technical Analysis

USD/CHF rose during the session on Thursday, but was fairly weak in its momentum. It gave up about half of the gains by the close, and the pair looks like it isn’t quite ready to move forward yet. We have a simple set up in the pair at the moment, as the support level just below should be strong going down to the 0.90 level. The market simply must close below that level for us to consider selling, but even then we will more than likely pass as the Swiss National Bank is working against the value of the Franc.

A move above the Wednesday high would be our cue to buy. The Franc should continue to weaken over time, and any intervention in the EUR/CHF pair will translate over to this market as well. Because of this, we much prefer buying this pair than selling it.

USD/CHF Forecast February 3, 2012, Technical Analysis

Written by FX Empire