Is the Swissy Getting Set for a Rally?
Last week I had a good look at the USD/CAD. It had pulled back and reached a key level based on one of my favourite longer-term trading strategies. Since that point, it’s bounced nicely.
As it turns out we are now setting up in a similar fashion in the USD/CHF.
The USD weakness over the course of the week has opened up some really great trading opportunities in the majors. As you can see from the chart of the Swiss Franc, it has pulled back from the highs of above parity.
Buying Pressure
Now that we are back towards the 20-period EMA, I think we can start looking for a bounce. What’s more, we put in a really nice bullish candle. To me, that is a hammer type pattern, where there is a long wick. That suggests that there is buying interest below that is propping us up in the short-term and that will hopefully follow through.
For a buy at current levels, I think that 1.0000 is a good upside target to have.
USD/CHF – Daily Chart.
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