News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Forex Strategy Video: Trading Implications for USDCHF from EURUSD, EURCHF

Forex Strategy Video: Trading Implications for USDCHF from EURUSD, EURCHF

John Kicklighter, Chief Strategist

Talking Points:

USDCHF recently dropped back to a two-year low following a 7-day decline

• The inverse correlation between USDCHF and EURUSD is extremely high - the franc mirrors the euro

• A floor in EURCHF, questions about the euro's strength and a dollar Taper outlook creates opportunity

Sign up for DailyFX-Plus to have access to Trading Q&A's, educational webinars, updated speculative positioning measures, trading signals and much more!

Is a bottom inherently more appealing than a top? EURUSD has put in its first bearish day in 8 trading sessions, and USDCHF its first bullish day in 8. This is not a coincidence as the two pairs maintain an extreme, negative correlation - meaning they move in opposite direction and at the same intensity most of the time. Yet, this creates an interesting situation for a USDCHF chart that otherwise looks like a head-and-shoulders pattern. The outlook for Euro with ECB stimulus discussions, the Dollar with the Fed's Taper discussion and the SNB's 1.2000 floor all factor into the USDCHF's future. We look at this pair more closely in today's Forex Strategy video.

Sign up for John’s email distribution list, here.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES