FX.co ★ USDCHF short-term pattern could push price to 0.99

USDCHF has produced a bullish divergence signal warning bears of a potential upward reversal. Price is still below important resistance levels and we wait patiently for a break out that would push price towards 0.99.

Green line - bullish divergence

Blue line - resistance

Red lines - expected size of upward move in case of break out

USDCHF is trading right below the 0.9750 resistance. The last time this pair was at current levels produced a long upper tail reversal candlestick pattern. Now the upward move from 0.9630 has stopped right at the same area confirming the importance of the resistance. If bulls manage to capture 0.9750 and stay above it, I will expect price to continue higher towards 0.99-0.9950