USD/Swiss franc: Buy or sell?

The Swiss franc (USD/CHF) is trading within a short-term lateral process, and we see that the currency has made bearish signals that have not yet been knotted. While 0.904 francs are not exceeded, we will see even larger cuts, although it should be short-lived and limited back to 0880-0.885 francs.

While the previous minimum of 0.87 francs is the short and medium term support, the uptrend should be resumed towards higher areas; otherwise, an outline of further declines will take a greater role and we´ll see further losses towards more depressed forward values.

Even in the month of May, the dollar (NYBOT:DX) had left a monthly reversal bullish signal and therefore, the previous minimum of 0.87 are key medium support and that keeps alive such bullish signal.
 



In turn, a direct break above 0.903 francs (CME:S6M14) will annul any sign of weakness and enable short-term bullish continuation towards 0.915 francs and 0.94 francs later, without expecting further rallies towards higher zones.

About the Author
Julian Yosovitch
Julian Yosovitch is a trader, and columnist for Ambito Fiinanciero (Argentina), Gestion (Peru), Saladeinversion.com, Inversion and Finanzas (Spain).
He holds a Bachelor of Business Administration and a Professor Master in Finance (UDESA). He is also a Capital Markets Specialist (UBA-IAMC) and Financial Markets Analyst - Ruarte´s Reports Trader. Follow his blogs here, and folow him on Twitter @julianyosovitch.
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