I’ve been banging on for a while about the dollar against the Swiss franc as we have been consolidating at extraordinarily high levels. That being said, there are a lot of fundamental reasons to think that this goes higher. This isn’t just a “fade the rally” type of resistance play. The Swiss National Bank has cut interest rates by 50 basis points at the last meeting and is set to continue doing so. At the same time, the Federal Reserve is very unlikely to cut any time soon and possibly not even for the rest of the year. With that being said, I like the idea of buying pullbacks, and I do think that the 0.90 level might end up being a bit of a floor in the market, especially now that the 50-day EMA is approaching that level. A break above the 0.92 level. Well, I’m looking for 0.95 and then eventually parity.
USD/CHF Analysis: Fed > SNB?
