Looking for more U.S. dollar trades? I gotchu!
February was a GOOD month for USD/CHF, as it found bottom at .9060 to jump allll the way to its current .9420 levels.
But can USD/CHF bulls keep up the pressure?
USD/CHF: 1-hour
Both the 1-hour chart’s 100 and 200 SMAs are still pointed higher, which can support further buying.
But USD/CHF has stalled in a 75-pip range between .9425 and .9350 after a sharp upswing last week. The range’s resistance, in particular, was also a major inflection point back in November and December.
And then there’s Stochastic, which just hit overbought status.
USD/CHF’s next direction might depend on how many risk-averse traders pick USD over CHF amidst the Fed’s hawkish expectations and higher Treasury yields.
Increased USD demand could bust USD/CHF above its consolidation and retest levels not seen since December. .9460 is a good area to watch though the pair could also hit .9500 if there’s enough momentum.
Meanwhile, concerns for the U.S. economy or risk-taking in other markets might drag the dollar lower against CHF.
If it’s looking like the .9425 range resistance is holding, then you gotta be ready to trade a possible trip to the .9380 mid-range levels or the .9350 support closer to the 200 SMA.
