FX.co ★ USD/CHF: potential reversal

The USD/CHF pair turned to the upside in the short term and now is located at 0.8934 at the time of writing. From the technical point of view, the price action signaled an oversold situation, but a new leg higher is far from being confirmed.

Fundamentally, USD received a helping hand from the US economic data today. The Flash Services PMI came in at 50.9 points versus 49.9 expected and compared to the 50.1 in the previous reporting period, while Flash Manufacturing PMI was reported higher at 50.0 compared to 49.5 points expected, confirming expansion as well. Tomorrow, Fed Chair Powell's speech should have a big impact on this market.

USD/CHF Oversold Signs!

As you can see on the H1 chart, the rate failed to reach and retest the median line (ml) of the descending pitchfork signaling exhausted sellers. Now, it has jumped above the upper median line (uml) which represents a dynamic resistance.

In the short term, it tries to confirm its breakout. So, only stabilizing above the upper median line may announce a larger rebound.

USD/CHF Forecast!

The weekly pivot point of 0.8960 stands as a key resistance. Jumping and closing above it activates further growth (swing higher) and is seen as a buying opportunity.