As we mentioned in our latest analysis on USDCHF, price was forming a higher low and a new upward move was expected. Since it was trading around 0.91, we turned bullish as price was showing reversal signs and the key support was respected.
Orange line - key support trend line
Black lines - Fibonacci retracements
USDCHF today surpassed our second target, which was the 61.8% Fibonacci retracement. Price has reached the 78.6% Fibonacci retracement. Trend is bullish. Price has potential to move higher and break above September highs. As long as price is above the orange support trend line, trend will remain bullish. Breaking above the 61.8% retracement was a blow for bears. This increases the chances of making a higher high above 0.9366. Support is at 0.9150-0.9180. Bulls do not want to see price overlap this area.
