USD/CHF edges higher after ending its temporary drop. USDX's throwback pushed the greenback higher versus its rivals. The current rally could attract even more buyers in the short term.
The pair was into a corrective phase. Now it has turned to the upside and it seems determined to overpass 0.9045 former high. USD rebounded after good US data reported on Friday.
The Flash Manufacturing PMI dropped to 58.5 points versus 58.4 expected, the Flash Services PMI increased unexpectedly from 58.3 to 58.9 even if the specialists have expected to see a drop to 57.9 points, while the Existing Home Sales surged to 6.69M, higher compared to 6.59M estimated.
USD/CHF Strongly Bullish!
USD/CHF retested the Pivot Point (0.8940) level before flying above the ascending pitchfork's upper median line (UML). Is traded above the R1 (0.9010) targeting the 0.9045 former higher high.
The pair has retreated a little from the upper median line (UML) trying to capture more upside energy. USD/CHF's corrective phase was ended after printing a major bullish engulfing right on the ascending pitchfork's median line (ML).
Closing above the R1 (0.9010) signals more gains ahead. The R2 (0.9064) and the first warning line (wl1) are seen as potential upside targets. Still, we cannot exclude a minor decline in the short term as the price could want to test and retest the UML before resuming its upwards movement.
Forecast &Tips!
Buy USD/CHF if the price closes the current H4 candle above 0.8995 former high and above the UML. R2 (0.9064) and the R3 (0.9134) could be used as upside targets.
