Technical outlook and chart setups:
1. The USD/CHF pair has produced an engulfing bullish signal on daily chart yesterday. It is currently trading above 0.9000 and is poised to push further high. Hence recommendations are to hold long positions and look to add further on dips. Risk remains at 0.8800.
2. Immediate resistance is the recent swing highs at 0.9150 (intermediary resistance), followed by 0.9250 and 0.9450, while supports are spread through 0.8900 (intermediary) and 0.8800 respectively.
3. The entire structure reveals that a major bottom could be in place at 0.8800 now. Furthermore, the down trend line has been broken and prices have also tested the backside at 0.8900 (resistance turned support). Implications are higher highs and higher lows from here on.
Trading recommendations:
Hold on to long positions, stop at 0.8800, target open.
Good luck!
