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FxWirePro: Stay bearish in USD/CHF - a monthly perspective

We at FxWirePro remain bearish in USD/CHF. While back in January, when we were bullish on the dollar against the franc, we suggested that this pair might correct towards 0.98 and then bounce back. We had based our expectations on policy outlook of the Trump administration and our conviction that Swiss National Bank (SNB) will be the last man standing on the easing front. While we expect the SNB still be the last man, the policy accomplishment of the Trump administration doesn’t look so bright though. Hence, we became increasingly doubtful of the dollar’s strength.

With such view, in a subsequent article, we recommended maintaining the short position in the USD/CHF pair with targets around 0.965 and then 0.92. Our first target was achieved and we believe the next one will be too. The pair is currently trading at an important support level of 0.95 area. A correction from here is very much possible and if such occurs we would use that opportunity to enter fresh short positions.

Here is a chart for our readers to give a monthly perspective, so the bearish potential can be seen.

Please note, the trend lines are drawn based on closing price and maximum penetration. Also note the RSI, which has broken below support level around 50.

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