USD/CHF Price Action Signals Up Reversal!

USD/CHF has rebounded and now is almost to hit some critical upside obstacles. A valid breakout will indicate that the pair will develop a significant leg higher. The price rallies as the USDX has managed to rebound in the short term.

USDX's strong increase should bring a reversal on USD/CHF. Good US data today could support the USD's appreciation. Also, you should be careful around the BOC, this major event could bring high action on the greenback.

USD/CHF has jumped above the down channel's resistance and above the median line (ml) of the minor ascending pitchfork. A valid breakout would signal more gains in the upcoming days. The R1 (0.9124) is seen as a resistance as well, so maybe you should wait for a bullish closure above this level as well before going long on this pair.

The pair has retested the lower median line (lml) of the ascending pitchfork confirming it as strong dynamic support. Also, its failure to stabilize under 0.9056 level suggest that the downside movement is over.

Buy a valid breakout (close and retest) above the downtrend line, median line, and above the R1 (0.9124). The first upside target is seen at the upper median line (uml), around 0.0197 level.

R2 (0.9212) and the R3 (0.9259) could be used as upside targets and obstacles as well. The upside scenario could be invalidated by a false breakout with great separation above the mentioned resistance levels or by a major bearish engulfing.