By FX Empire.com

USD/CHF rose again during the previous week as the Dollar continues to be bid up. The Franc is being worked against by the Swiss National Bank, and the Swiss have the misfortune of having to sell 80% of their exports to Europe. The EU is going into recession, and with the Franc being so overvalued at the moment, this leads to negative economic outlooks for Switzerland. The Dollar is the “safety trade”, and as a result we think this pair will continue to rise.

However, you must be aware that the 0.95 level is a massive resistance area that will take a lot to breakthrough. But when it does – this pair will shoot straight up more than likely. The pair should continue to grind higher going forward, and as a result we are comfortable owning it as long as we are above the 0.93 handle.

USD/CHF Forecast for the Week of January 2, 2012, Technical Analysis

USD/CHF Forecast for the Week of January 2, 2012, Technical Analysis

Originally posted here