As we look at the USD/CHF Forecast, during the day on Wednesday, we get the FOMC Statement, which of course can cause quite a bit of volatility in the US dollar. Because of this, Chris looks at the USD/CHF pair, which has bounced significantly off of the 0.97 level in order to form a hammer for the Tuesday session. With this being the case, we at The Trader Guy are looking at this particular pair as it reacted where we would expected to. With this being the case, if we can break above the top of the hammer for the session on Tuesday, it’s likely that the buying pressure will continue.
The FOMC Statement could suggests that perhaps we are getting ready to see more interest-rate hikes, and if the American suggests anything even remotely hawkish, this market should continue to go much higher. The moving averages are starting to turn higher, at least the 50 day exponential moving average. With that being the case, the market should continue to find interest as buyers seem to be looking for value.
Nonetheless, one thing that we can count on during the day on Wednesday is going to be very volatile to say the least, so having said that caution will be needed. Ultimately, we should see some kind of sustained move, but in the meantime it looks as if the Forex traders will have to play ‘small ball’, with a bias towards a possible rally. There is no real interest on the part of the guys in shorting this market, as there is a massive amount of support below. Keep in mind that the Swiss franc has been getting beat up lately, and this is of course going to extend to the Dollar, if it can get some good news during the day. The market could be quiet for most of the day though, as the FOMC Statement won’t come out until afternoon in America.