US Dollar Eyes 0.8150 Target Against Swiss Franc Amid Favorable Interest Rates
Christopher Lewis, a technical analyst at DailyForex, sees potential in the US dollar against the Swiss franc, citing favorable interest rates and a 'carry trade' setup. He has been long on this pair for a while now and views dips as opportunities.
The market has bounced off its 50-day exponential moving average (EMA) multiple times in recent weeks and appears to be targeting the 0.8150 level. The US dollar offers a positive swap, which many traders take advantage of, and Lewis doesn't worry about a huge move to the upside.
He notes that while there is a 55% chance of an interest rate hike in September, the Japanese are lagging behind, making it difficult to imagine market collapse without external pressure. The interest rate differential is not a reason for a decline anytime soon, according to Lewis.