USD CHF Bears Have to Watch for Sentiment Shift

Risk-takers are controlling the USD CHF market at this time. Frustrated SwissFranc investors are no longer satisfied with the low returns in theU.S. and are seeking higher yielding assets elsewhere. Sentiment could shift quickly so be prepared for a short-covering rally especially if equity markets feel pressure.  This pair may be setting up for a short-covering rally to 1.1117.

The main trend remains down for the USD CHF. A new swing top was also formed at 1.1265, indicating developing weakness as the lower-top, lower-bottom formation continues. The trade through the last swing bottom at 1.0976 reaffirms the current downtrend.

This currency is trading inside of a major support zone at 1.1168 to 1.0980. Holding below 1.0980 will be a strong sign that lower prices will follow. If the market regains 1.0980 then look for a sideways trade to develop.

Risk-takers are controlling the market at this time. Frustrated Swiss Franc investors are no longer satisfied with the low returns in the U.S. and are seeking higher yielding elsewhere.

The “W” bottom on the hourly chart is already indicating the possibility of a bottom.  Watch for a breakout through 1.10280 to trigger a rally to 1.1117.

James A. Hyerczyk has been actively involved in the futures markets since 1982. He has worked in various capacities within the futures industry from technical analyst to commodity trading advisor. Using W. D. Gann Theory as his core methodology, Mr. Hyerczyk incorporates combinations of pattern, price and time to develop his daily, weekly and monthly analysis. His firm, J.A.H. Research and Trading publishes The Forex Pattern Price Time Report... More