The currency pair seems determined to resume its up reversal after the last temporary retreat. USD/CHF has retreated a little after the most recent upside movement. It has retested a support level, resistance has turned into support, and now is fighting hard to approach 0.9296 former high.
The dollar needs strong support from the US economy to be able to continue its appreciation. The risk-off rally should continue if the USDX jumps and closes above 94.74 former high.
USD/CHF has tested the 0.9197 downside obstacle and now it could jump higher. Technically, the pair is somehow expected to resume its upside journey after the breakout above the downtrend line.
The price has failed to retest the broken downtrend line signaling strong buyers. The breakout above 0.9197 and the current retest confirms the Double Bottom pattern as well. So, a larger growth could develop.
- USD/CHF Trading Tips
You can buy the current rally using a Stop Loss below 0.9189 yesterday’s low and a first upside target at the 0.9296 level. A consolidation above the 0.9197 and above the Pivot Point (0.9224) could bring a long opportunity as well.
Don’t forget that only a new higher high, jump above 0.9296 could really validate a broader upside movement.
Sell a drop below 0.9189 former low with a downside target at 0.9056 static support.