FxWirePro: USDCHF short side target extended to 0.86

Anyone of our readers, who has gone through our previous call in dollar/franc exchange rate will better be able to relate it, which was given on December 10th 2015

“Sell dollar against franc at 0.985 and at rallies with stop loss around 1.033 and target around 0.9-0.895 area”

Anybody who has missed it can check that out here, http://www.econotimes.com/FxWirePro-USD-CHF-outlook-%E2%80%93-downside-opens-up-again-128950

So far, the stop loss hasn’t been hit but we also haven’t made much of a progress. As of now, we are about 300 pips in the money but we are much more confident than the last time that the target given will be reached. Brexit alone has the potential to reach those targets, however, we aren’t relying or rather betting on the exit but weakness in Dollar. Current rate hike path isn’t just sustainable to keep the dollar strong. Prospect of any major easing from the Swiss National Bank (SNB) doesn’t seem likely at all.

With such outlook, we are extending our target to 0.85-0.86 area. However, due to plausible volatility on the horizon we are not able to improve much on our stop loss. Hence, the stop loss is modified to 1.025 area.