The USD/CHF is on the move, driving higher and extending Friday’s gains. At press time, the Swissy is up 0.58% on the session and marching toward 0.9200. The volatility has returned rates to the 0.9150-0.9250 value area established last June and July.

It has been a relatively quiet news cycle to open the trading week. However, there are two items that are drawing the attention of U.S. traders:

• Delta: The COVID-19 delta variant continues to spread quickly throughout the United States. Over the weekend, new daily cases of COVID rose above 100,000, the highest since last February. At this hour, the debates over masks and potential vaccine mandates rage. U.S. stock markets are taking Delta in stride, moving modestly lower on the session.
• Infrastructure: According to reports from Capitol Hill, Democrat Majority Leader Chuck Schumer has stated that he expects the bi-partisan infrastructure bill to pass Tuesday morning. Approval is pretty much a foregone conclusion. Reportedly, the U.S. Senate is now preparing to bring a massive US$3.5 trillion “social spending bill” to the floor ahead of the August break. 

Despite Delta and the uptick in U.S. government spending, forex players are driving the USD/CHF higher. Let’s dig into the technicals and see if opportunity is afoot.

USD/CHF Trends Higher For The Second Consecutive Session

Forex traders are certainly enthusiastic about the long side of the USD/CHF. Right now, it’s unclear as to why the Swissy is on the march ― but it is. The Swiss Unemployment Rate came in as advertised and U.S. JOLTS Job Openings outperformed consensus expectations. So, bullish is the way, regardless of the reason.

Bottom Line: If we see the USD/CHF continue it’s trek north, a selling opportunity will come into play. Until elected, I’ll have sell orders in the queue from 0.9259. With an initial stop loss at 0.9284, this trade produces 25 pips on a standard 1:1 risk vs reward management plan.