The Greenback is testing a key resistance area against the Swiss franc!
Will we see an upside breakout this week?
Or will the bears defend the zone just like they have over the past few months?
USD/CHF Daily Forex Chart by TradingView
Easing December Fed rate cut expectations and a small pickup in market risk appetite had traders scooping up the U.S. dollar for most of last week.
The Swiss franc did not share that luck. The safe haven was dumped as traders leaned into risk, Swiss GDP came in soft, and SNB President Schlegel started talking about negative interest rates again.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the U.S. dollar and the Swiss franc, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
USD/CHF has been stuck in a range pattern since July, but it has enjoyed a strong second half of November. The pair climbed from .7875 and is now knocking on range resistance near .8100.
Can the dollar keep that bullish momentum going against the franc?
A few more bullish candlesticks and steady trading above the .8100 range resistance would open the door to an upside breakout and a run toward higher inflection points like .8200 or .8300.
But if USD/CHF turns lower from this area and prints a few bearish candlesticks, the range could hold for a while longer.
In that case, a move back toward the .8000 major area of interest or even the .7900 range support zone stays on the table.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment!
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
