USD/CHF Above Par For The First Time Since July
For the first time since late-July, the USD/CHF has eclipsed par value. Forex players have bid the Swissie with conviction, driving rates to an intraday high above 1.0010. Is a test of 2018’s high water mark of 1.0068 in the cards for the near future?
There is no point denying the recent strength of the USD against the Swiss franc. Rates of the USD/CHF have rallied with a vengeance beginning in September, posting almost a 500 pip gain. Given the recent volatility facing global equities, a lagging Swiss franc is a bit of a surprise. Nonetheless, the USD is becoming a preferred asset amid tightening FED policy and a strong U.S. economy.
USD/CHF Technicals
In a live market update from yesterday, I outlined a scalping plan to the short for the USD/CHF. The recommendation turned out to be a success, as short-term sellers defended the 1.0000 level. Now, all bets are off as price has broken out above par.
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Overview: The value area between .9900 and 1.0000 has been a monster throughout 2018. Beginning in mid-May, it has been a hotly contested battleground for both bulls and bears. Until today, trade has rarely been sustained above this level.
Currently, we have a daily double-top formation setting up near the yearly highs between 1.0025-1.0068. I fully expect sellers to become involved in this area. Be on the lookout for the recent bullish trend to become exhausted and set up a position short trade for coming sessions.
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