The Greenback has opened the forex week modestly in the green. Rallies against the Australian dollar, Swiss franc, and Canadian dollar have offset small losses vs the Euro and GBP. Trade has been typical of a holiday session, with liquidity drying up as the day wears on.

For the remainder of the week, there are no primary market movers scheduled for the USD. However, next week features the first meeting of 2019 for the U.S. FED. Expect the FED to become a growing presence in the news cycle as we roll toward Friday’s closing bell.

USD/CHF Technicals

The USD/CHF is in a position to extend its recent win streak to five sessions. Rates are up significantly on the day, driving toward the 1.0000 level.

2019 has brought bids to the Swissie en masse, producing more than a 200 pip rally in just under two weeks. It now appears that this market is going to test par value very soon.

Bottom Line: Par value is always a hotly contested area for the Swissie. In the event we see a test of December’s High (1.0008), rates are likely to retrace toward .9950 before continuing the bullish trend. Of course, market fundamentals will play a huge factor in valuations, especially as the January 30th FED Meeting draws near.

Until elected, I will have sells queued up from 1.0004 in the USD/CHF. With an initial stop loss at 1.0026, this trade produces 33 pips on a 1:1.5 risk vs reward management plan.