USD/CHF grows as the US Dollar Index has started increasing again. USDX's growth boosts the greenback which could increase versus its rivals. The pair was into a corrective phase in the last weeks and now it could develop a new leg higher after ending its decline.
The US still needs support from the US economy to be able to resume its growth. The ADP Non-Farm Employment Change will be released today and is expected to increase from 517K to 872K.
The ISM Services PMI could increase from 63.7 to 64.2, while the Final Services PMI indicator is expected to remain steady at 63.1 points. In line with expectations data or better should help the USD to resume its appreciation.
USD/CHF Trading In the Green!
USD/CHF has found support on the weekly S1 (0.9079) level and now is trading back above the weekly pivot (0.9130).
The 0.9160 former high is seen as the immediate resistance. Jumping and stabilizing above it should signal more gains ahead. Coming back above the 50% retracement level and registering a valid breakout above the R1 (0.9181) could really validate a bullish reversal.
Outlook!
A new higher high, bullish closure above 0.9160 could signal further growth. Passing and stabilizing above R1 (0.9181) could bring a new long opportunity with a first upside target at the R2 (0.9232).
