If the 10 year yield in America continues to drift a bit lower, and we break the bottom of this hammer from the Wednesday session, that could be a sign that we are about to see a bit of a breakdown in this pair. If that’s the case, then I would expect the USD/CHF pair to go looking to the 0.90 level. This of course is a large, round, psychologically significant figure, and an area where we would be expecting to see a lot of noisy behavior. The 50 Day EMA is also racing toward that area as well, so it all comes together quite nicely. Uptrend RemainsAt this point in time, the uptrend most certainly remains in this currency pair, at least until we break above the 0.89 level. If we were to drop down below there, then I might start thinking that we are going to fall apart. That would probably also show a lot of negativity around the world when it comes to the US dollar, which of course has been a little bit overdone to the upside. I do think that given enough time we probably would see other pairs rapidly turnaround, but at this point in time I think we are a long way from that actually happening, so we need to assume that we will get US dollar strength sooner or later, and therefore I like the idea of buying dips but I wouldn’t necessarily jump in with a huge position right away.More By This Author:USD/CAD Forecast : US Dollar Falls Then Bounces Against The Canadian DollarGBP/USD Forecast: Hits Potential FloorGBP/AUD Forecast: Continues To Drift Lower but Looks Ready to Bounce Hard
