USD/CHF Forecast November 5, 2015, Technical Analysis

The USD/CHF pair initially fell during the course of the day on Wednesday, but found enough support below the 0.99 handle to cause the market to bounce and form a perfect shape of a hammer. With that being the case, the market looks as if it is ready to go towards the parity level, and it is only a matter of time before he break above there. We think pullbacks continue to offer buying opportunities, because quite frankly the impulsive move higher has been strong enough that Forex traders around the world are more than likely pain attention to this pair now. On top of that, we have the Swiss National Bank that has been working against the value the Swiss franc lately, and as a result it would not surprise us at all to see the CHF continue to lose value. This will be especially easy to see against the US dollar, which of course has been a fairly strong currency as of late.

Ultimately, the parity level of course has a lot of psychological significance, but it is also an area that’s been sliced through a couple of times already. In other words, a lot of traders out there will essentially be okay with crossing this line. That’s not to say that it’s going to happen right away, but ultimately it does seem to be where we’re going. With that being the case, we are buyers and buyers only as we not only see all of this bullishness momentum, but we also see that the 0.98 level offered a significant amount of resistance during the month of September, and now should offer quite a bit of support. Keep in mind that the Swiss are trying to keep there are economy going, and in a situation where the European Union is so fragile, it makes sense that the Swiss will continue to fight. Ultimately, we believe that this market continues to go much higher, but again, we are more than likely going to have to bang around in the short-term to make the longer-term “buy-and-hold” type of move.