The Relief Of The Swiss Currency

Hello, my friend!

It seems like the world turned upside down and conservative countries aim to preserve the identity and avoid the process of complete integration. Furthermore, the current situation on the market reminds me of the pulse of a person who has heart problems but tries to recover. Even this person is getting better, there is still a high probability of critical developments. At this challenging time, we still have a safe haven in Europe - neutral and moderate Switzerland. Today we will talk about USD/CHF.

Firstly, let's check the situation with this instrument for now.

Picture 1. A chart of USD/CHF for 05.02.2019 - 05.03.2019.

As we can see in picture 1, the USD/CHF chart is quite linear and has a downward trend. However, we can not understand the moods of USD/CHF only by a trend line, because in this case a chart will be taken out of context.

To confirm our assumptions about the trend, let's check the index of big traders that indicates how professional traders assess further perspectives of USD/CHF.

Picture 2. A chart of USD/CHF and the index of big traders for 05.02.2019 - 05.03.2019.

As we can see in picture 2, there is a growing desire to exchange Francs to USD, which leads to lowering of USD/CHF. Additionally, we can say that the changes for this week were more significant than the average, so it encourages us to invest "lower".

Finally, we believe that for this week the price will decline and it is better to increase the number of "lower" positions.