USD/CHF has shown oversold signals lately buy is still premature to talk about a larger bullish reversal as long as the price is trading below 0.8919. The pair moves sideways in the short term and I really hope that today's US data could bring a clear direction.
The price has developed a reversal pattern in the short term, so validating this structure could bring a buying opportunity as well. Today's data could be decisive, better than expected US figures could boost the pair, while poor numbers will keep the rate deep in the seller's territory.
USD/CHF is traded above the ascending pitchfork's median line (ml) and right below 0.8919 critical static resistance. Breaking through the 0.8919 level and above the upper median line (uml) signals an upside breakout and brings a long opportunity.
Dropping and stabilizing again below the median line (ml) invalidates further growth, the bullish reversal. The price has found strong resistance at the R1 (0.8904) and now it could pressure the median line (ml).
Buy only a valid breakout above the 0.8919 and through the upper median line (uml). Closing above the R2 (0.8958) will definitely validate an upwards movement towards 0.91 and 0.92 psychological levels.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.