USD/CHF Finds Support Despite Pullback
The USD/CHF currency pair is seeing continued upward support, according to technical analyst Christopher Lewis. The US dollar has been experiencing a pullback in this region but remains supported by the 50-day EMA and other factors.
On Tuesday, the market initially broke below the 0.81 level before finding buyers. The interest rate differential is expected to continue seeing US dollar positivity, although it's fading slightly in recent days.
The Swiss national bank has kept interest rates near zero, which has contributed to a soft franc and weakened its appeal. Lewis notes that this situation benefits the Swiss, who are happy with the current market conditions.
He also mentions that breaking above the 0.82 level would be a significant victory for the market, indicating strong momentum. If that happens, the 0.85 level could become a target given enough time.