USD/CHF rallies and could close the day at new highs if the USDX resumes its bounce. It's trading at 0.9154 and it should approach the 0.92 psychological level in the upcoming hours.
The pair has finally managed to jump above the downtrend line signaling an upward reversal. Actually, USD/CHF has shown oversold signs lately. It has developed a Double Bottom pattern as well, but we still need confirmation that it will register a larger upside movement.
USD/CHF has tested and retested the 0.9056 level accumulating more bullish energy before jumping above the downtrend line. It has closed above 0.9139 former high signaling further gains.
The 0.9200 psychological level is seen as critical resistance. A valid breakout confirms the Double Bottom pattern and suggests buying with a potential upside target around 0.9376.
- USD/CHF Trading Tips
Buy a downtrend retest followed by another higher high, or wait for a valid breakout above the 0.92 psychological level. The 0.93 and 0.9350 levels could be used as upside targets.
A short opportunity could appear if the breakout above the downtrend line is invalidated and if the price drops below the 0.9056 level.
