The US dollar has been fairly noisy against the Swiss franc early on Tuesday but remains positive overall.
USD/CHF
The US dollar has been fairly noisy against the Swiss franc during the trading session on Tuesday as we continue to bounce around in a fairly tight consolidation area. The 50-day EMA is currently offering support just above the 0.8050 level, and the 0.8150 level continues to be a bit of a barrier to overcome in the form of resistance.
The interest rates in America did initially climb a bit during the session, but as New York jumped on board, they are starting to cool off just a touch. Whether or not that remains the case, we'll have to wait and see, but ultimately, this is a market that is pairing a high-yielding currency in the form of the US dollar against the Swiss franc, and that's something that should be watched closely.
Barrier Above
If the market were to be able to break above the 0.8150 level, it could kick off a move to the 0.82 level, just as a breakdown below the 50-day EMA could open up a challenge to the 200-day EMA closer to the 0.80 big figure.
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We had recently seen a lot of bullish action in this pair, only to pull back from the 0.82 level, and since then, we have been consolidating and grinding sideways. That does make sense because of the resiliency of the US dollar and the uncertainty out there at the same time. Ultimately, I like getting paid at the end of every session if I can have that happen, and as a result, I like owning this pair to the upside.
I have no interest in buying the Swiss franc. The Swiss National Bank has made it clear that they are hanging on to a zero-interest rate policy, and as a result, I think it's not worth fighting.
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