USD/CHF (current price: 0.9824)
The Swiss Franc has been hit by the result of the Brexit vote, as the country has close connections with the British economy, and the EU. Even 50-year Swiss government bonds are trading with negative yields, and that also adds to the pressure on the currency. The U.S. Dollar managed to gain ground on the Franc despite the change in interest rate expectations, as the U.S. economy remains stronger than the European. The pair reached the 200-day MA at 0.9850, and a rally to parity might now be in the cards.
Our assessment: USD/CHF has been rallying since the Brexit vote and its now close to breaking out from its declining long-term trend channel on the upside, with strong support at 0.985 and around 0.98.
