USD/CHF Upside Confirmed!

USD/CHF is expected to increase further if the USDX manages to start another bullish momentum. The pair has escaped from an important chart pattern signaling a broader upside movement.

The dollar remains strong despite the USDX's last drop, USD/CHF maintains a bullish outlook and it could approach and reach fresh new highs soon. USD/CHF edges higher, but it remains to see how it will react after the US Consumer Confidence will be released today. The indicator is expected at 88.3, a deeper drop caused by the COVID-19 could stop the USD's rally.

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The pair has found strong resistance at the R1 (0.9799) level, it has come back to retest the Pivot Point (0.9727) level and the 23.6% and now it seems determined to break above the R1 level.

Technically, USD/CHF is expected to approach and reach the 0.9899 high after the failure to approach and reach the median line (ml) of the descending pitchfork. I've said in my previous analysis that a valid breakout above the 23.6% level and above the PP (0.9727) will validate a significant increase.

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USD/CHF has validated the breakout above the PP (0.9727) and above the 23.6% Fibonacci level and now is expected to make another higher high and to resume the upside movement. A valid breakout above the R1 (0.9799) level will give us a chance to buy this pair again, the next targets are seen at the R2 (0.9874) level, at the 0.9899 - 0.9900 area, and higher at the R3 (0.9947).

A further increase could be invalidated only if the price decreases and if it closes and stabilizes below the PP level. USD/CHF is bullish, a valid breakout above the 0.9900 psychological level will confirm a larger increase in the medium to the long term.

The material has been provided by InstaForex Company - www.instaforex.com