The USD/CHF pair rallied today and now is trading at 0.8962. Technically, the price action signaled exhausted sellers. After yesterday's positive US data, the greenback was expected to appreciate a little in the short term today. Still, a larger growth is far from being confirmed.
Now, it has dropped a little which is natural after the US Advance GDP increased only by 1.1% versus the 2.0% growth expected, while Pending Home Sales reported a 5.2% drop even if the traders expected a 0.6% growth. Unemployment Claims and Advance GDP Price Index reported positive data.
Tomorrow, Switzerland's Retail Sales may report a 0.4% growth, while the KOF Economic Barometer is expected at 98.0 points. On the other hand, the US Employment Cost Index, Core PCE Price Index, Chicago PMI, and Revised UoM Consumer Sentiment could change the sentiment.
USD/CHF Near Resistance!
From the technical point of view, the false breakdown below the 0.8859 lower low signaled an oversold. Taking out the downtrend line and the 0.8927 announced a potential reversal.
Now, it was almost to hit the weekly R1 of 0.8980 and the median line (ml). These represent upside obstacles and short-term targets.
USD/CHF Forecast!
A valid breakout above the R1 (0.8980) and through the median line (ml) activates an upside continuation and is seen as a bullish signal. The upper median line (uml) stands as a potential target.
