USD/CHF analysis (July 08, 2011)

The pair has made a started a new rally yesterday with a shy tag of 0,85 which offered a nice resistance once again.
We still expect a test of 0,8550 over the coming sessions considering the studies which are pointing to further gains.

USD/CHF: daily chart

The USD/CHF setup is very constructive with the formation of a matrial base on top of the historical low at 0,8275 but as long as the pair remains stuck below its daily descending trendline and strong resistance at 0,8550, the pressure will remain on the downside.

We now need to see a confirmation of the bullish momentum with an acceleration above 0,85 at first. It will allow a breakout of a descending trendline which has been tested 5 times since it started in February 2011.

Recent low at 0,8375 must hold to allow a bullish scenario.