USD CHF Could See Powerful Rally

A big shift in investor sentiment has encouraged Swiss Franc traders torepatriate funds to the U.S.  Although there is strong upside action inthe USD CHF on the daily chart, it’s the weekly chart that is givingthe strongest indication of the start of a short-covering rally.

Analysis

A big shift in investor sentiment has encouraged Swiss Franc traders to repatriate funds to the U.S.  Although there is strong upside action in the USD CHF on the daily chart, it’s the weekly chart that is giving the strongest indication of the start of a short-covering rally.

The trend is down on the daily and weekly charts but the impending weekly closing price reversal bottom is indicating that this market has the potential to rally to 1.1165.

A close above 1.0668 will form a reversal bottom but it is going to take a confirmation rally next week to trigger the next rally to a major 50% level at 1.1165.

Daily Chart

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