USD/CHF Forecast January 2, 2012, Technical Analysis

USD/CHF fell on Friday as traders originally tried to rally “risk on” assets. The Dollar caught a bid later in the session though, and the USD/CHF was no different than any of the others. The daily candle is a hammer sitting just on top of the recent support zone at 0.93, and as a result we favor buying on the dips now. The 0.95 level above will provide resistance, but the markets moves lately suggest that there is real pressure building to the upside in this pair, and that momentum will completely take over if we can get above the resistance zone. Going forward, we like buying this pair as the Dollar is the most favored currency at the moment. Buying on dips and a break of the Friday range is how we are playing this pair.