USD/CHF could rebound to 0.9850 in the near term
From a technical analysis perspective, USD/CHF has rebounded strongly from major support at 0.94 after dwelling on that level for several sessions. The risk/return ratio becomes again in favor of buying above this support and the powerful rebound opens the way to a potential reversal which could extend to 0.9850, then possibly the parity threshold.
This bullish outlook would theoretically be invalidated in the event of a pullback below $0.94, but a drop below this threshold will likely require dovish rhetoric from some Fed members or a marked slowdown in PCE inflation.
Entry: Buy above 0.95
Risk/reward ratio: >3
Follow the evolution of the USD/CHF price with IG.