US Dollar Grinds Higher Against Swiss Franc

The USD/CHF pair is still consolidating after Wednesday's FOMC meeting, but technical analyst Christopher Lewis remains bullish on the US dollar. He believes that the interest rate differential favors the dollar and has only expanded in recent days, making him a long-term buyer of the pair.

Lewis points out that the 0.82 level is an area of support for the Swiss franc, which was also a previous swing high. However, he sees this as a buying opportunity, especially with the stochastic oscillator currently in an oversold position and crossing over. This could set up for a pullback, but Lewis believes it would be a chance to go long again.

The Swiss National Bank's desire to keep interest rates at zero also favors the dollar, despite concerns about inflation slipping into Switzerland due to energy shortages on the continent. Lewis is confident that the pair could reach as high as 0.86 over the next several months.