USD/CHF seems determined to rebound after registering a strong correction. The pair has decreased as the USDX has plunged in the last weeks.
Now, the price action has signaled that the downside movement is over and that the buyers could take the lead in the short term. That’s why we decided to place a Buy Stop pending order on this pair, trying to catch the new upside momentum.
USD/CHF is back above the downtrend line signaling a reversal. It has found support at the S1 and now is trading above the weekly pivot (0.9130). Its failure to stabilize under the 50% retracement level could send the rate towards the 38.2% level.
Closing and stabilizing above 0.9141 high could activate a bullish momentum. USDX’s further decline in the short term could push USD/CHF higher towards the descending pitchfork’s median line (ml).
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