Technical outlook:
USDCHF has been trading sideways for the last three trading sessions broadly between 0.9530-40 and 0.9580-90. The currency pair was expected to push higher on Tuesday as the US dollar gained across major currencies but USDCHF could reach up to the 0.9586 high before hitting resistance. We still await a break out through the 0.9800-0.9900 zone in the near term.
USDCHF has carved a larger degree upswing between 0.8930 and 1.0064 since June 2021. The currency pair has retraced the above upswing through the Fibonacci 0.382 level as projected on the daily chart. Ideally, a rally should materialize from current levels and push through 1.0064 in the next several trading sessions.
Alternatively, if prices slip below the 0.8520 from here, the potential remains for a drop through 0.9350, which is the Fibonacci 0.618 retracement of the larger degree upswing. A push above 0.9600 from here could inspire bulls as they prepare to target the 0.9800-0.9900 zone in the near term.
Trading plan:
Potential rally towards 0.9800-0.9900 against 0.9500
Good luck!
