FX.co ★ USD/CHF: oversold signals above 0.8660 support

The USD/CHF pair dropped a little in the short term but the upside pressure remains high. It's located at 0.8688 at the time of writing and it seems determined to come back higher. After its strong rally, a temporary retreat was natural. The rate tested the immediate support levels, gathering more bullish energy.

Fundamentally, the USD remains bullish even if the US Revised UoM Consumer Sentiment came in at 71.6 points versus 72.6 points expected, Employment Cost Index registered a 1.0% growth compared to 1.1% growth estimated, while Core PCE Price Index rose by 0.2% matching expectations.

USD/CHF Trading In Green!

Technically, the USD/CHF pair came back to retest the median line (ml) which stands as a dynamic support. Furthermore, the 0.8660 represents static support.

As you can see, the price registered a false breakdown with great separation below the median line (ml) indicating that the sell-off ended and that the buyers could take it higher. As long as it stays above the median line (ml), the USD/CHF pair could resume its growth.

USD/CHF Outlook!

Jumping and stabilizing above 0.8697 validates further growth. This is seen as a buying opportunity. Only dropping below 0.8660 invalidates the upside scenario.