FX.co ★ USD/CHF: Double Bottom and Reversal?

USD/CHF has rebounded from a support zone due to the USDX's short-term rally. Still, is premature to talk about a bullish reversal as long the pair stands below the immediate upside obstacles.

The price has recovered after Friday's manufacturing and services data. I believe that the next few days could be decisive for the USD/CHF. An upside breakout from the down channel could confirm an up reversal. The US New Home Sales could support the USD's growth if the indicator reports better than expected data later today.

USD/CHF has failed to stabilize under 0.9056, it has retested the lower median line (lml) of the minor ascending pitchfork and now it challenges the Pivot Point (0.9077). Technically, only a valid breakout above the channel's resistance, median line (ml), and above the R1 (0.9124) will really validate the bullish reversal and will bring a long opportunity.

The 0.8998 - 0.9056 area is seen as a strong support area, that's why we could think that USD/CHF will try to develop another leg higher from here. The price could move sideways in the short term around the 0.9056 level before deciding a clear direction.

• USD/CHF Trading Tips

Buy a valid breakout above the R1 (0.9124) and use the R2 (0.9212) and R3 (0.9259) as immediate upside targets.

USD/CHF is trading within a support area, so we don't have a selling opportunity right now. I believe that only a drop and stabilization under 0.8998 could bring a selling signal.