USD/CHF fell for the week as traders sold the Dollar in general during most of the week. The end of the week saw a reverse though, and this ended the session in a hammer. The hammer formed for the week is sitting just above the 0.95 level, and this suggests to us that we are going to see some kind of support in this area. The breaking of the top of this weekly candle would be a classic buy signal in this pair.
The pair looks likely to grind higher over time, and as a result we like buying it. The European currencies are all getting hit at the same time, and the Franc will be no better off. The Dollar is getting a boost – so this pair going higher makes sense. We are buying dips on the shorter timeframes, and buying a break of the top of this previous week’s range.
USD/CHF Forecast for the Week of January 16, 2012, Technical Analysis
Originally posted here
