FX.co ★ USD/CHF flirts with resistance area

USD/CHF is moving somehow sideways in the short term. It was into a corrective phase which is over. The pair has managed to stay higher as the Dollar Index has reached new highs in today's session.

The US dollar remains still strong after the US Unemployment Claims dropped unexpectedly lower. It was reported at 348K, far below the 362K estimate and compared to 377K in the previous reporting period. The US manufacturing and services data could be decisive on Monday. Better than expected US reports slated for release next week may help USD/CHF to jump towards new highs.

USD/CHF imminent breakout

USD/CHF continues to stay below the descending pitchfork's upper median line (UML). As you can see on the H4 chart, it has dropped to retest the 50% retracement level and now it could try to take out the dynamic resistance represented by the upper median line (UML).

It could move sideways in the coming hours and days before making a valid breakout. Techncially, its failure to stay below the descending pitchfork's lower median line (LML) may signal an upside breakout through the upper median line (UML).

USD/CHF Outlook

Jumping and stabilizing above the upper median line (UML) and through the 0.9200 psychological level indicates an upside continuation.