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Get Ready: US Dollar / Swiss Franc Exchange Rate Rally Forecasted at Bank of America Merrill Lynch

The Swiss Franch (Currency:CHF) heads into the weekend looking firm:  

  • The British Pound to Swiss Franc exchange rate is 0.04 pct lower on a day-to-day basis; GBP-CHF is at 1.4295.
  • The Euro to Swiss Franc exchange rate is 0.02 pct lower at 1.2310.
  • The US dollar to Swiss Franc exchange rate is 0.14 pct down at 0.9216.

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Bank of America Merrill Lynch: Forecasting a comeback by the US dollar against the Swiss Franc

Today we hear from MacNeil Curry at Bank of America Merrill Lynch Global Research who says he is forecasting a period of Swiss Franc weakness ahead.

Curry's technical analysis reveals:

"US dollar basing argument remains intact. Dollar Bulls need to put USD/CHF on their radar.

"We remain US Dollar bulls and continue to think that a US Dollar base and turn higher is not far from materialising. This view remains intact against a DXY break of 80.86/ 80.49.

"We continue to favour selling GBP against the USD (as well as the AUD – but not at these levels), and now want to add the Swiss Franc as a way to express US Dollar strength.
best swiss exchange rates

"Indeed, we look for USD/CHF to base into 6m trendline/range support, at 0.9176/30, from which the pair should embark on a medium-term advance to the 13m contracting range highs at 0.9807.

"A break of 0.9255 would be the first sign of basing, with a close above 0.9354 confirming. GET READY."

Check our complimentary charts and organise your own Swiss Franc / US Dollar strategy.

However, in the short-term we should be prepared for further Swiss Franc buying. Matt Weller at GFT says:

"The USD/CHF stabilised around the .9200 round handle yesterday after dipping briefly below it early in North American trade. As we noted yesterday, a confirmed break below .9200 would likely target the multi-month low .9130 early next week, but large moves are unlikely today."

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