- The US dollar has bounced ever so slightly against the Swiss franc during trading here on Monday as the 0.81 level continues to be a major area of contention.
- We are in the process of at least potentially forming a bit of a double bottom. So, I think that is worth paying close attention to.
Ultimately though, I think you have to look at this through the prism of a market that still has a lot to do in order to prove bullish. Now, having said that, it looks like the sellers are running into a little bit of trouble, but if we were to break below the lows of Friday, I think we could open up the door for a move down to the 0.80 level.
Although I'm not going to get aggressive with that. I think you've got to realize that ultimately, this is a market that is going to favor the latest headlines, determining where it goes. The Swiss franc is a major safety currency, while the US dollar is as well, but the Swiss franc is much more along those lines of safety.
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Risk on, this USD/CHF pair will rally and there are overtures out there supposedly by the Iranians looking for a way out of this war and that might be what starts to kick this off. We'll just have to wait and see. With this, I'm watching very closely, and I think this could be a nice setup, perhaps a move to the 0.83 level as possible, but we need a little bit of momentum.
We don't have it quite yet, but we are starting to show signs of another potential bounce. This is a pair that pays a positive swap at the end of every day, so that's something worth paying attention to as well.
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