USD/CHF has managed to recover in the last few days and is now trading below the downward channel's upside line, at the 0.9140 level. Technically, the pair was expected to develop a larger upside movement after escaping from under the major downtrend line, but the US Dollar Index decrease has weakened USD as well.
The price has declined within a downward channel pattern, but it has found strong support around the 0.9000 psychological level and now it could try to break trough the channel's upside line.
A valid upside breakout, jump, and stabilization above this dynamic resistance could signal a larger upside movement and an uptrend in the medium to the long term.
- USD/CHF Trading Conclusion
The short-term bias is bearish (downside) as long as USD/CHF stays within the downward channel's body. Still, you can notice that the pair has failed to retest the major downtrend line in the most recent attempts signaling a potential broader growth.
We may have a great buying opportunity if USD/CHF increases and moves beyond the 0.9207 former high. So, if the price escapes from the down channel and jumps above the former high, we could go long with a first upside target at the 0.9300 psychological level.
