EUR/CAD continues to show strengthApril 19, 2018
British pound testing major levelsApril 30, 2018
The US dollar has been rallying mercilessly against most currencies around the world, and the Swiss franc has been no different. We have broken above the 0.98 level, only to turn around and form a bit of a shooting star. We are still above that level, so I think that if we can break down below the 0.98 level, I think that we would get a pullback, perhaps some type of “reversion to the mean”, so this could be an opportunity to find value at lower levels. Short-term traders will probably be sellers, but I believe that it is probably easier to follow the longer-term move that we have seen to the upside over the last several months.
Coinciding with this move is a sign of support in the EUR/USD pair as well, so I think that it is possible that the US dollar is going to give up some of the major gains that we have seen recently, but I think that the overall attitude of the US dollar has shown itself to be very strong. If you are a short-term trader, you may be old to take advantage of the pullback, but overall, I think you are better off waiting for signs of support below, perhaps on the SMA, using the Bollinger Bands indicator for direction.
The other scenario of course is that we continue to go higher, which would be a break above the top of the range for the session on Wednesday, clearing the 0.9850 level. At that point, the market will continue its march towards parity. I do believe in parity longer-term, and the 0.96 level underneath should continue to be supportive, and in fact I believe it could be the “floor” in the market currently. While most people are paying attention to the EUR/USD pair, they have been missing the massive move in this pair.