The Week of Feb 7 to 13

The Week of Feb 7 to 13

Well there is a strong possibility that the markets will remain choppy and volatile this week. The direciton should be erratic at the beginningof the week with a slight bias to the appreaciation of the majors agaisnt the USD. That should once again change as the week progresses and the dominant trend of the appreciation of the USD Index re-asserts itself.
I am looking at the AUD/USD, GOLD/USD and EUR/USD to regain some of their losses early in the week and of course the USD/CHF to fall or retrace.
You can see from the chart that the USD/CHF is in serious appreciation mode. Now we know that the SNB (Swiss National Bank) policy of late especially since the crisis has unfolded about two years ago does not favor a strong Frank so it could rise much further however what is holding it back is the fact that the USD is still in a serious depreciative state and is beingdevalued by the Fed at an alarming rate. So I do believe the USD/CHF will likely fall to at least the 1.0629 as an immediate short term target and then to the 1.0535 and to the 50% FIb mark of 1.0460
Time will tell and it won't be strait down it may rise and retest it previous high before falling.