USD/CHF: Starting a Recovery?
The US dollar started yesterday to rise against the Swiss Franc after
hitting mutli-month lows. The rebound so far looks like a correction,
but some signals and short-term formations suggest that a bottom might
be in place.
USD/CHF again rejected from below 0.9500
On Tuesday the pair bottomed at 0.9443, the lowest level since August 2015; but it quickly rose back above 0.9500 and even ended the day higher forming a head and shoulders patter in the 1-hour chart. Once again the 0.9500 has been a strong support that capped the downside.
From there the US dollar is recovering. Only a consolidation under 0.9500 would open the doors for more declines while if it holds above a bullish correction seems like a possible scenario.
The current correction could continue toward 0.9650 where the next important resistance is seen; above the next medium-term level to watch is located around 0.9790 - 0.9800 (Dec lows / Apr highs).