USD/CHF Forecast December 16, 2011, Technical Analysis

USD/CHF fell hard on Thursday as traders reacted to the lack of anything substantial in the Swiss National Bank statement. The markets were anticipating a raising of the floor in the EUR/CHF pair, and the result would have been a rising in the Franc-related pairs around the world. However, it didn’t get it and the speculators in this position sold off the pair. The 0.95 level is indeed resistive, so this move lined up nicely with the technical analysis as well. However, the Dollar is getting bid up against everything currently, and the upward momentum should continue in this pair. We are willing to buy dips, but would like to see the 0.93 level retested as support first.