USD/CHF Breakout Imminent: Will Pair Reach 0.85 Target?

The USD/CHF currency pair has been experiencing choppy trading sessions in recent days, leading to some exhaustion and malaise as markets head into the weekend. This is partly due to the uncertainty surrounding global events such as conflicts in the Middle East, which could lead to a huge gap in the oil market and subsequent changes in interest rates in America.

Despite this volatility, technical analyst Christopher Lewis remains bullish on the USD/CHF pair, citing the Golden Cross signal where the 50-day EMA breaks above the 200-day EMA. This indicates a strong trend favoring the US dollar, which could lead to a breakout towards the 0.85 target once the pair approaches 0.82.

Lewis notes that short-term pullbacks are possible as markets consolidate and retest previous levels, but he has no interest in shorting the USD/CHF pair due to unfavorable swap rates. With the Swiss National Bank seemingly content with a weak Swiss franc and the Federal Reserve potentially raising interest rates to combat inflation, Lewis believes the market is backed by fundamental factors that support his bullish outlook.