USD/CHF recently rose sharply breaking through the resistance level 0.9650, which was set as the buy target in our previous forecast for this currency pair. The breakout of the resistance level 0.9650 (former strong support level, which reversed the previous minor impulse waves (i) and (iii) in February and March) is likely to accelerate the active intermediate impulse wave (C)- which started earlier – when the pair reversed up from the major long-term support level 0.9500 (Chernovolov, fxbazooka). Bounce from four-month old descending trend-line support might propel the pair for near-term (Panchal, FxStreet).
(USDCHF forecast by FXStreet)
Redeker, Tse and Rubenfeld (Morgan Stanley) also do not believe the USD has topped, although it may certainly feel like it has judging by the price action over the past few weeks.
"It's recognized by everybody that the Swiss franc is still significantly overvalued and poses a difficult situation for Switzerland, If you look at indicators, we are hopeful that (solid U.S. growth) will continue and over time, stabilize the currency situation. The dollar could then gain vis-a-vis the euro and Swiss franc" Thomas Jordan (Swiss National Bank Chairman) said. On Weekly timeframe, Bullish engulfing occurs and supported by weekly stochastic goldencross which could be a sign of bullish trend this week (Ismail, TradingView).
(USDCHF Weekly)
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