USD/CHF seems determined to resume the upwards movement after ignoring the near-term former highs. It has escaped from a Falling Wedge pattern but we still need a valid breakout above the major downtrend line to be sure that we will have a strong leg higher.
USDX's rebound boosted the greenback which could dominate the currency market if the index resumes its bullish movement. The risk-off sentiment helped the US dollar to appreciate versus the CHF which is known as a safe-haven currency.
The breakout of 0.9142 and 0.9161 former highs confirms strong bullish momentum. The downtrend line and the R1 (0.9197) are seen as resistance levels, so a breakout would signal further growth.
Actually, a valid breakout above the downtrend line could suggest buying as USD/CHF reversal would be confirmed.
- USD/CHF Trading Tips
Buy above a valid breakout of the downtrend line and above the R1 (0.9197) level. R2 (0.9262) and the 0.9361 area seen as immediate upside targets.
Please keep in mind that a false breakout or a bearish engulfing on the downtrend line will send the rate down again. This scenario will happen if the USDX drops deeper again.
