First of all, the outlook is still bearish as long as the price is trading below the 0.9761 static resistance. The USDX's rally has sent the USD/CHF pair higher on the Daily chart, but we still need a confirmation that we'll have a larger upside movement.
Yesterday's US data has boosted the USD on the short term. The greenback strengthened as the ISM Non-Manufacturing PMI rose from 55.0 to 55.5, above the 55.1 forecasts. Besides, the ADP Non-Farm Employment Change has registered an unexpected increase as the US economy created 291K jobs in January, much better than the consensus for 157K new jobs.
I believe that some good US data tomorrow, NFP, Average Hourly Earnings and the Unemployment Rate will attract more buyers on the USD/CHF pair.
USD/CHF continues to trade in a range between 0.9761 and 0.9645 levels, a valid breakout on the upside will signal a potential increase at least till the upper median line (UML) of the major descending pitchfork.
The pair has failed to approach and reach the median line (ML) signaling oversold market conditions and a potential rebound. USD/CHF traded in the major support area, that's why I've drawn an ascending pitchfork, hoping that I'll catch a potential bullish movement. The price has validated the lower median line (lml) and now it tries to reach the 0.9765 high.
- Trading Tips
USD/CHF was rejected from the lower median line (lml) and from the 0.9645 level, so a valid breakout above the 0.9761 could validate the Inverted Head & Shoulders pattern and could signal a potential climb towards the median line (ml) of the minor ascending pitchfork. A selling opportunity could be considered if the price decreases and makes a valid breakdown below the 0.9645 and below the lower median line (lml).
