The EURUSD and USDCHF have a very high inverse correlation so when they get out of sync i.e. the EURUSD makes new highs but the Swissie doesn’t make new lows then that is a tell-tell sign that one is ‘lying’ and can offer ‘clues’ to the next directional USD move. The chart below of the EURUSD vs the USDCHF is pretty self-explanatory and we expect that the USDCHF will get back in sync with the EURUSD and will weaken.
Looking at the USDCHF we can clearly see that the currency pair is in a bottom building phase.
1. Non – confirmation between the EURUSD and USDCHF points to impending USD strength. Both pairs are playable!
