Potential signal: I am a buy on a move above the 200-Day EMA on a daily close. Stop loss is at the 0.8770 level, and I am moving to break even as soon as we hit 0.89 above. Target is 0.9090.

 This Pair Should Be Important This WeekThat being said, you should be paying close attention to it because it may be one of the places where we have the most opportunity. The 200 day EMA sitting just above, of course, has its own influence. But if we can break above there, then the 0.89 level is your next target. Ultimately, I do think this is a situation where you continue to buy dibs based on interest rate differential and the fact that it’s very likely the Swiss National Bank cuts interest rates much quicker than the Federal Reserve does. If we can break above the 0.89 level, then I think it does open up the possibility of a much bigger move, perhaps to the 0.91 level. Underneath, not only do we have the 50-day EMA offering potential support, but I also believe that the 0.8750 level is an area that you’ll be watching for potential support. So, with that, I do think that we’ve somewhat made a bottom. The Swiss National Bank certainly looks quite a bit more dovish than the Fed does right now. And as long as that’s the case, I just don’t see how this pair breaks down other than some type of risk off situation. But even then, you’re going to see the US dollar hold its own. After all, it is also a safety currency, so if the Franc were to rally, it will do so with more momentum against riskier currencies around the world and although the Franc could strengthen against the greenback, it won’t do it as rapidly.More By This Author:BTC/USD Forecast: Bitcoin Drops To Kick Off The WeekS&P 500 Forecast: Buy-On-Dip Strategy PrevailsGBP/USD Forecast: Pulls Back to Test Crucial Area