Market Bulls writes: We have seen some interesting activity in the USD/CHF over the last few months as most of the market is still looking to weigh-in on the potential for interest rate changes as the US Federal Reserve. At this stage, there are not many global central banks that can even consider raising interest rates, so the developments here at the Fed will be critically important for those trading in the currencies space. The first step in the process here is to determine the price levels that will be required to form a basis and argue for or against bullish trend activity in the USD/CHF.

Chart View: USD/CHF

Source: CornerTrader

Here, we can see modestly bullish activity in the USD/CHF over the last year. Shorter term, things are looking less positive but if we are able to see a break of resistance at 0.9850. This would indicate that the shorter term downtrend has run its course and that we are likely to later see a break back above the parity level. This makes the pair once of the more interesting selectins in the currency markets when we look at the potential market activity into the end of this month.

Central Banks

Longer term, we will need to see more from the Fed in order to determine its true interest rate bias. We have seen improving economic data in the Swiss region but this does not necessarily mean that we will see changes in interest rates over the next quarter. This does create some positives for the US Dollar against many of its commonly traded counterparts, so traders that are focused on the currency space should remain cognizant of these factors are we head into the final portion of this month. The USD/CHF is pressing into price levels that are going to be key in determining the overall trend in the USD, and this is likely to have ripple effects in both stocks and commodities as well.

By Market Bulls

MarketBulls.net

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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