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
Risk/reward ratio: >3
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