Technical outlook:
USDCHF has bounced back sharply from the 0.9520 lows registered on Friday. The currency pair has produced a Doji/Pinbar candlestick pattern on the daily chart, indicating a potential trend reversal in the near term. It is seen to be trading close to 0.9585 at this point in writing and is expected to push higher towards the 0.9800-0.9900 area.
USDCHF has been rallying since January 06, 2021, after registering lows at around 0.8760 as seen on the daily chart. The recent larger degree upswing is seen between 0.8930 and 1.0064. The currency pair has retraced following the recent upswing and found potential support close to 0.9520 last week.
Also, note that the Fibonacci 0.382 retracement of the above upswing is also passing through 0.9630 which is seen as potential support. Bulls might be inclined to come back in control from the current levels and push the price towards fresh highs above 1.0064 going further. Alternatively, it could be a triangle forming before breaking out.
Trading plan:
Potential rally towards the 0.9800-0.9900 zone against 9.9500
Good luck!
