USD/CHF sold off hard on last week’s dollar weakness, and is currently sitting near multi-week lows. With the SNB still standing opposed to significant Swiss Franc strength, USD/CHF is a good place to take bets on the dollar, even in its current beaten down state.
Any USD/CHF rally would be well supported by technical levels as well, with the pair currently sitting at the bottom of a major range as well as the 38.2% fib of the SNB sparked rally.
While the most recent employment report from the US was bad and helped drive the dollar lower, the good news is that we are only 2 weeks away from another, more significant NFP report. Should that present a rosier picture of the US employment sector, we could see the USD rally and such a rally would be felt quite significantly in pairs like USD/JPY and USD/CHF.
Written by: Liam McMahon, Currency Strategist – GlobalFxClub.com