FxWirePro Call review: Prepare to add short positions in USD/CHF

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.

We also suggested after the pair reached 0.95 that there might be a correction, which the pair is currently undergoing. Despite the recent weakness in the franc, especially against the euro, we have not yet changed our outlook in the franc. The Swiss franc has weakened to the lowest level against the euro since January 2015, when Swiss National Bank (SNB) unexpectedly dropped its euro/franc peg maintained at 1.2.

In the case of the dollar, we would like to recommend our readers to prepare to add short positions in USD/CHF as the pair corrects. The pair is currently trading at 0.968 and start adding short positions from 0.974 area till 0.98 area with the above-mentioned target.