USD/CHF is trading at 0.8950 level after reaching a new high of 0.8976 level. It could slip lower in the short term after its failure to close stabilize above a strong resistance area. Technically, the pair is somehow expected to increase if the USDX will continue to grow.
The current drop could be only a temporary one if the US economic data comes in line with expectations or better during this week. Unfortunately, the greenback was weakened by the ISM Manufacturing PMI indicator's drop from 60.7 to 58.7 points.
USD/CHF Inverse Head & Shoulders!
USD/CHF has finally managed to jump above 0.8919 confirming the Inverse Head & Shoulders pattern. It has reached the confluence area formed at the intersection between the R2 (0.8960) with the upper median line (uml).
The rate has failed to stabilize above this confluence area, resistance zone, for now. A valid breakout through this area validates a larger upside movement ahead. Technically, we cannot exclude a temporary drop towards the 0.8919 level, neckline, if it stays under the R2 (0.8960).
Trading Tips!
Buy if USD/CHF closes above 0.8976 today's high and use the R5 (0.9085) level as an upside target.
