USD/CHF Technical Analysis October 25, 2011

USD/CHF rose, and then sold off on Monday to form a shooting star on Monday. The market is being manipulated by the Swiss National Bank, which has been actively working against the Franc. Because of this, we cannot sell this pair as the Dollar is a “safe haven” currency as well, and with all of the headline risks out there, we could see a flight to safety. This would push this pair up, and we would want to buy it. The 0.88 level continues to hold prices up, but we think the closer we get to 0.85 – the closer we get to the Swiss National Bank and should see it get involved. We are waiting for supportive candles between 0.88 and 0.85 to buy from.