USD/CHF fell during the Monday session as the Dollar lost against many other currencies. The risk on attitude in the markets was somewhat predicated by the idea of the Greeks passing another austerity passage that could in theory allow the European Union to send another bailout their way. The meeting of European Union Finance Ministers on Monday hasn't produced an agreement yet, but at the time of writing they are still looking for solutions.

The Swiss are working against the value of the Franc, most notably against the Euro. This will more than likely continue to weigh upon the value of the Franc everywhere, and this pair will be no different. The Swiss send 80% of their exports into the European Union, and as a result they will continue to worry about the strength of the franc versus the Euro. As a result, we have a bit of a buffer in this pair as the threat of intervention still looms large against the Euro.

The US economy has shown signs of improving over the last several months, and while the Europeans struggle, it appears that the USA is a bit of a bright spot in the world at the moment. With this in mind, it makes sense that more money will flow into the US, and away from places that are heavily dependent on the EU in general.

The candle for the Monday session is a hammer, and as a result it looks like support is coming back into the market in the general vicinity. The 0.91 level is the start of serious support in the market, and the range runs all the way down to the 0.90 level. The hammer offers a decent sign that the buyers are ready to step back into the markets at this point. On a break higher than the level from the Monday candle, we are ready to go long for the time being in this pair. A move to 0.95 could be possible, but there will be numerous staggers on the way up as the market is so cluttered presently.

USD/CHF

USD/CHF Forecast February 21, 2012, Technical Analysis

USD/CHF Pivot Points (Time Frame: 1 Day)

 Name  S3  S2  S1  Pivot  R1  R2  R3

 Classic
0.8993
0.9038
0.9076
0.9121
0.9159
0.9204
0.9242

 Fibonacci
0.9038
0.9070
0.9089
0.9121
0.9153
0.9172
0.9204

 Camarilla
0.9091
0.9098
0.9106
0.9121
0.9121
0.9129
0.9136

 Woodie's
-
0.9036
0.9072
0.9119
0.9155
0.9202
-

 DeMark's
-
-
0.9140
0.9111
0.9057
-
-