In our last analysis on USDCHF we mentioned that while price is trading around 0.9190 and above the key orange trend line, we prefer to be bullish. Price made a deeper pull back towards the orange trend line around 0.9158, respecting the support level.
The medium-term upward sloping orange support trend line has increased importance as it has been tested several times. Respecting this support trend line could lead to another upward move in USDCHF that could push price back above 0.93 once again. That is why I prefer to be bullish near the trend line as the risk I take relative to the upside potential is minimal. Next important resistance is found at 0.9255. Breaking above it would be a bullish sign.
