The USD/CHF pair moves somehow sideways in the short term after finding strong support. Unfortunately, the price failed to develop a strong upwards movement as the immediate dynamic resistance continues to hold. Still, as long as it stays near the upside obstacle, an upside breakout is imminent.
The currency pair has started to grow as the Dollar Index continues to grow after ending its temporary correction. Fundamentally, the US is to release its Consumer Price Index and the Core CPI later. These economic indicators are seen as high-impact. Anything could happen after these releases, that’s why it’s important to be very careful.
USD/CHF Technical Analysis!
Technically, the pair is traded at 0.9139 level right below the descending pitchfork’s upper median line (UML) which acts as an upside obstacle. Taking out this resistance indicates that the USD/CHF could develop a new leg higher.
A new false breakout, being rejected again indicates that the pair could move down again. This scenario could take shape if the DXY drops again. The pressure remains high as long as it stays within the descending pitchfork’s body, below the upper median line (UML).
Note: ForexSchoolOnline is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.