USD/CHF Technical Prospects- Is Now The Time To Buy?
Sofien Kaabar | Aug 07, 2017 07:29PM ET
The dollar has hit a good technical level against the USDCHF, which along with the SNB's effect, created a very good Buy opportunity in the pair.
Technically the low RSI level and the 1.161% extension alongside with the support level would be a good short-term opportunity. However on the medium term it looks like the futures traders are accumulating the Swiss franc as it can be seen from the commitment of traders report provided by the CFTC, note that the white line is the net fund ( Non-commercial ) positions vs the CHFUSD (which is the opposite of the USDCHF) hence the positive correlation between the two lines, so if the white line is rising that means traders are buying swiss futures, and while that it is on absolute terms and not just against the dollar, it still has a respectable impact on the pair. After all the direction of this pair will ultimately be decided by two factors ; 1- The tone of the FED , 2- The inflation numbers for the United States.
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