USD/CHF is struggling to recover after a larger downside movement. The price is traded at the 0.8902 level and it could pass beyond the 0.8919 high soon. The pair has shown oversold signs lately, but it was premature to go long only based on a bullish divergence.
The pair could grow in the upcoming weeks if a risk-on sentiment will dominate the markets. Otherwise, USD/CHF could drop deeper. The US has managed versus CHF even if the US data have come in mixed.
USD/CHF Bullish Reversal!
Technically, the price has escaped from a minor down channel, falling wedge, after retesting the lower median line (LML) of the ascending pitchfork. I believe that a new higher high, bullish closure above 0.8919 could suggest buying with a potential upside target at the median line (ML).
The short-term bias will be bullish as long USD/CHF stays above the lower median line (LML) of the ascending pitchfork. A drop under this line signals further drop.
- USD/CHF Trading Tips!
Buy a bullish closure above the R2 (0.8921) with a potential upside target at the median line (ML), around the 0.9050 level.
Sell a new lower low, drop under 0.8822 level. Dropping below the lower median line (LML) without reaching the median line (ML) represents a selling signal.
