Technical outlook:
USDCHF is inching higher through 0.968 as the Asian session progresses on Wednesday. The currency pair drifted in a tight trading range and tested the 0.6950-60 support zone on Tuesday. A push above the 0.9700 mark will accelerate further and push prices close to the 0.9800-0.9900 zone going forward. Potential triangle consolidation continues for now.
USDCHF rallied from 0.8760 to 1.0064 carving a religious uptrend. The recent larger degree upswing is between 0.8930 and 1.0064 as marked on the daily chart. Prices have dropped through the Fibonacci 0.382 retracement level of the recent upswing and found interim support at around 0.9550 before oscillating within a potential triangle consolidation.
USDCHF might continue within the above contracting triangle and produce another two waves around 0.9900 and 0.9600 in the next several trading sessions before breaking higher above 1.0064. On the flip side, if prices break below 0.9559 from here, bears might further drag the price towards 0.9400.
Trading plan:
Potential consolidation range continues as bulls are eyeing 0.9900 against 0.9550 in the near term.
Good luck!
