USD/CHF (current price: 0.9919)
The U.S. Dollar has been steadily gaining on the Swiss Franc for three weeks now, and it has surpassed the 200-day MA in the process last week. The pair is getting close to parity after hitting a low near 0.9440 earlier this month. USD/CHF broke out from the long-term declining trend channel yesterday and it will be crucial to hold above the 0.985 in the coming weeks to confirm a new rising trend. Interest rate expectations are likely to drive trading in the coming sessions as the short-term technical picture remains bullish.
Our assessment: The pair is now less than 1% below parity and the important support/resistance level is a likely to be tested before a meaningful correction can occur.
