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USD/CHF Forecast November 16, 2015, Technical Analysis

By:
Christopher Lewis
Published: Nov 14, 2015, 05:17 UTC

The USD/CHF pair bounced off of the parity level during the course of the session on Friday, and broke above the top of the shooting star from the

USD/CHF Forecast November 16, 2015, Technical Analysis

The USD/CHF pair bounced off of the parity level during the course of the session on Friday, and broke above the top of the shooting star from the previous session, as is also a sign of strength. Ultimately, if we can break above the 1.01 level, the market should then reach towards the 1.02 level, and then much higher than that. We have no interest in selling this pair, the US dollar of course is one of the strongest currencies in the Forex world at the moment. With that being the case, the market should continue to go much higher, and with that we obviously are “buy only” at this point in time.

Keep in mind that the US dollar is strengthening due to several different factors at the moment, and although both of these are considered to be safety currencies, the reality is that the Swiss have the misfortune of been stuck in the middle of the European Union. Because of that, it makes sense that the US dollar does better than the Swiss franc, and with that being the case we are more than willing to go long for the long-term as well.

We believe that there is a massive amount of support somewhere near the 0.98 handle, and it is not until we break down below there that we feel the longer-term uptrend is in trouble. We anticipate the both short and long-term traders will continue to favor the upside and that Swiss franc will continue to be worked against by the Swiss National Bank. Ultimately though, there are different ways you can trade this market, but we believe that buying on the dips is probably the easiest way going forward. Ultimately, the market could continue for months, if not years to go to the upside at this point in time. This is because not only is the US dollar a safety currency, it is also a currency that money flows to from Switzerland when it comes to strong economic times. This pair tends to go higher in that scenario as well.


 

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About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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