USD/CHF fell again on Tuesday as the Dollar got sold off in American trading overall. The pair is just under the 0.90 level, and it should be said that the 6.18% Fibonacci level is in the area as well. The levels that we are currently seeing need to hold in order for this pair to try and rebound as the recent upsurge suggested that perhaps there was some kind of underlying strength in the Dollar when it came to the Franc.
The Swiss National Bank has a “floor” in the EUR/CHF pair at the 1.20 level, and that pair currently sits just above it. If that pair falls, intervention will more than likely effect this pair as well, and would push the price higher. However, as long as that market is quite, this one is free to fall. We are buying on signs of strength, and selling on a break below the Friday lows, but only if the EUR/CHF stays over the 1.20 level.
Written by FX Empire