USD/CHF: The dollar is trying to rise against the franc

USD/CHF may rise to 0.9850 in the near term

From a technical analysis perspective, USD/CHF has rebounded strongly from major support at 0.94 after being at this level for several sessions. The risk/reward ratio turns again in favor of buying above this support and the strong rebound opens the way for a potential reversal which could extend to 0.9850, then possibly the parity threshold.

This bullish outlook would theoretically be invalidated in the event of a pullback below $0.94, but a drop below that threshold would likely require dovish rhetoric from some Fed members or a marked slowdown in PCE inflation.

Entry: Buy over 0.95

Stop: 0.94

Measure: 0.98

Risk/reward ratio: >3

Follow the development of the USD/CHF price with IG.

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