# USD/CHF analysis (July 01st 2011)

We think the USD/CHF setup is now very constructive with the formation of a potential matrial base on top of the historical low at 0,8275.

A break above 0,8550 is still required though to really validate a bullish scenario.

USD/CHF: daily chart

Yesterday, we have seen the pair bouncing back above 0,84 in a sharp move. The pair is now testing the daily 20 moving average while the studies are pointing to further gains.

Next resistance comes in at 0,85 but we still need to see a break above that important pivot point at 0,8550 to validate a reversal structure. In this event, the potential to the upside would be significant with a first target at 0,88.

Only a break back below 0,83 would negate this bullish outlook.