USD/CHF Upside Activated

USD/CHF has finally managed to escape from a minor down channel signaling an up reversal. Technically, the pair was expected to increase despite the most recent corrective phase.

The USD has taken the lead and it should resume its appreciation as the USDX has given birth to a bullish reversal. Today's US data could boost the pair, so you should be careful as the economic figures will drive the pair. Switzerland will release the KOF Economic Barometer and its Retail Sales later, USD/CHF could decline a little if these figures beat the expectations.

USD/CHF has registered a valid breakout from the down channel and it has taken out the R1 (0.9124) static resistance. I've said in my previous analysis that the pair should develop an important upwards movement if it jumps above the median line (ml) and beyond the R1.

The price has found temporary resistance at 0.9172, it has slipped lower in the last hours but the drop could be ended anytime. The bias remains bullish as long as the rate stays above the median line (ml) of the ascending pitchfork.

The median line (ml) retest brings a long opportunity with a potential target at the upper median line (uml), 0.9197. USD/CHF could develop another bullish momentum after a minor accumulation, consolidation.

A major upwards movement will be validated by a valid breakout above 0.9197 and above the upper median line (uml). So, maybe you should wait for this scenario to be confirmed before taking action even if the pair is bullish in the short term.

Buy from above 0.9197 level with an upside target at 0.9376 level. We may have a long opportunity also if the pair come back down to retest the median line (ml) of the ascending pitchfork.