USD/CHF analysis (July 02nd 2011)

Although the long trend remains bearish, we think that the USD/CHF in on the verge of a major corrective move of top of its historical low at 0,8275.

 

USD/CHF: daily chart

The momentum is bullish and a break above important resistance at 0,8550 would validate a nice double bottom pattern and warranty a continuation to the upside with a next target at 0,8750 (previous low).
It is worth noting that the Swiss Franc should weaken against all its major counterparts in this event. We think there is a lot of potential to the upside over the coming months.

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