USD/CHF Technical Analysis October 18, 2011

USD/CHF rose during the Monday session as traders continue to buy the US dollar in reaction to the lack of urgency shown by the EU in relation to the debt problems in that area. The market has gone decidedly bullish on the USD over the last 24 hours, and should see a continuation of previous Dollar positive moves. Because of this, and the fact that the Swiss National Bank is willing to intervene if the Franc appreciates too much – we only buy this pair. However, there is the 0.9000 area just above that could prove difficult. We want to see a daily close above that level before buying this pair.