USDCHF is trading at 0.8908 having broken the short-term resistance at 0.8855-0.8860. In our previous analysis we anticipated a bounce towards the 0.8970-0.8980 area. Touching the lower wedge boundary and the RSI bullish divergence signs, made us expect a bounce.
Blue lines - bullish RSI divergence
USDCHF is moving higher and above 0.89. Potential bounce target is at 0.8970 where we find the resistance trend line. Longer-term trend remains bearish as long as price is below the 0.90 level on a weekly basis. Bulls should not get overconfident as long as price is below 0.90. Support is at 0.8820 and as long as price is above it we expect this bounce to 0.8980 to continue.
