USD/CHF was into a short-term corrective phase after escaping from a major downtrend. The selling pressure is still high but there’s still a chance for the pair to give birth to a new upside movement soon.
The US is to release the CPI and the Core CPI numbers later today. Better than expected data could force the greenback to take the lead again. Unfortunately, the COVID-19 crisis helped the CHF, a safe-haven currency, to remain strong versus the other major currencies.
USD/CHF is trading in the green according to the H4 chart, but a strong upside momentum is far from being confirmed. The near-term support is seen at 0.9056 level. It could turn to the upside if it stays above this downside obstacle.
We’ll need a bullish engulfing, pin bar, or any other reversal pattern that could signal a new leg higher. Now, we have to wait for a fresh trading opportunity, the price is to low to consider selling, while a bullish movement needs to be confirmed.
- USD/CHF Trading Recommendations
The pair is trading above a major support area, so we could search for long opportunities if the price really suggests that the correction is over.
A valid breakdown below 0.9000 psychological level signals selling, while a bullish fly above 0.9197 validates a broader upside movement. Also, a false breakdown with great separation below 0.9056 level could represent a bullish signal.