Looking at the session on Friday, there isn’t a whole lot to move the markets, but looking at this chart we can see that there certainly could be a little bit of a pullback in favor of the Swiss franc. The Swiss franc of course is being worked against by the Swiss National Bank, as we have recently found out that the Swiss National Bank has been selling its currency off. With that being the case, it’s only a matter time before the Swiss franc sells off.
The 0.96 level been broken to the upside was bullish for us, and as a result we started buying this pair. However, we ended up forming a shooting star and as a result it looks as if the market may pull back to try to find a little bit of momentum to continue going higher. The 0.97 level offered resistance, but we still believe that this market heads to the 0.98 handle.
With that being said, we are buying supportive candles below. We quite frankly look at it as “value” in the Swiss franc, and therefore have no interest in shorting. In fact, it is not until we get below the 0.95 level that we would even consider selling this pair or even seeing it as being bearish.
We should continue to go higher, and we have targets of 0.98, and then eventually parity between these 2 currencies. Below is our USD/CHF technical analysis video: