USD/CHF analysis (July 06, 2011)

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

The momentum is building nicely on the daily chart and despite the recent setback, we think that the 0,8550 will be tested soon. A break above this resistance might signify a shift in the trend with a lot of potential to the upside. 0,8750 would be the next target in this event.

A break below 0,83 though would put pressure on the pair with of risk of continuation to the downside below the historical low.