Is USD/CHF Ready To Reverse?
USD/CHF continues to stay right below a critical resistance level at 0.9120 and it needs a bullish spark to be able to develop a strong leg higher. The pair was into a corrective phase but the price action has signaled that the decline could be over and that the rate could try to come back higher.
The FOMC Meeting Minutes, Prelim GDP, Unemployment Claims, Revised UoM Consumer Sentiment, Durable Goods Orders, Goods Trade Balance could be decisive today for USD. Better than expected data could boost the greenback which will drag USD/CHF higher.
On the other hand, some poor figures could reactivate the risk-on rally, so USD/CHF could drop again.
USD/CHF Up Reversal Still In Cards!
USD/CHF is set to challenge the minor channel’s resistance again after failing to drop deeper after the last false breakout. Is trapped between the S1 (0.9080) and the R1 (0.9144) level, so a breakout from this minor range could bring a clear direction.
Passing and stabilizing above the downtrend line, the channel’s upside line makes USD/CHF very attractive for buyers. Such a valid breakout brings a long opportunity as the pair could develop a bullish reversal.
- USD/CHF Trading Tips
A valid breakout from the down channel suggests buying while a breakout through 0.9200 confirms a bullish reversal. The 0.9296 level could be used as the first important upside target.
You should be careful, anything could happen at the R1 and at the downtrend line, a false breakout with great separation or a major bearish engulfing could announce another sell-off.
The material has been provided by InstaForex Company – www.instaforex.com