Based on my analysis of the USD/CHF currency pair, I believe the market is gradually transitioning into a stronger bullish phase. Looking at the weekly chart, the pair spent several weeks moving sideways, which is not unusual when viewed in the context of its historical behavior. In fact, this period of consolidation closely resembled previous accumulation phases that eventually led to significant upward movements. One of the most important levels on the chart is 0.7772. This level acted as a strong resistance zone for several weeks and repeatedly prevented further gains. However, the market eventually managed to break above it, transforming the level from resistance into support. In technical analysis, this type of transition often creates what is known as a mirror level, and I view this development as a strong bullish signal.
Another factor supporting my outlook is the presence of a large bullish divergence on the MACD indicator. Divergences of this size are relatively rare on a weekly timeframe and often precede major trend reversals or strong directional moves. In my opinion, this divergence has not yet fully played out. I will consider it completely realized if the price successfully moves above the 0.8134 level. Until then, I continue to favor bullish scenarios and see little reason to focus on selling opportunities. From a wave-analysis perspective, I believe the second corrective wave has already ended near the mirror support zone, and the market is now beginning the third bullish wave. I can also identify an inverse head-and-shoulders formation, which further strengthens the case for continued growth. To me, the recent sideways movement appears to be a period of accumulation rather than weakness. On the daily chart, the third upward wave is becoming more visible. Applying a Fibonacci projection to the first wave shows that the 161.8% extension aligns closely with a descending trendline, creating a logical short-term target. While a temporary pullback from that area is possible, I expect any correction to be followed by renewed buying pressure and a continuation of the move toward 0.8035. Overall, I remain bullish on USD/CHF and believe the broader market environment continues to support U.S. dollar strength.
