The USD/CHF par rallied in the short term and now is trading at 0.8679 at the time of writing. The bias is bullish despite minor retreats. After its previous bullish momentum, a temporary retreat was natural as the price needed to attract more bullish energy before jumping higher.
Fundamentally, the greenback received a helping hand from the US Flash Manufacturing PMI which came in at 49.0 points versus 46.1 expected. The Flash Services PMI dropped to 52.4 points from 54.5 points signaling a slowdown in expansion. Tomorrow, the US CB Consumer Confidence is expected at 112.1 above 109.7 in the previous reporting period. This could be great for the USD.
USD/CHF 0.8683 As Resistance!
As you can see on the H1 chart, USD/CHF came back to retest the broken downtrend line (flag's resistance), confirming the breakout and this pattern.
Now, it is challenging the former high of 0.8683 and it seems determined to extend its growth. Its failure to reach the weekly pivot point of 0.8630 announced strong buyers.
USD/CHF Outlook!
A bullish closure above 0.8683 is seen as a buying opportunity.
