Hello traders! The USD/CHF bottomed out on August 18, when price tested 0.9009 low. This was the point where price bounced off the average price downtrend trendline and RSI formed a bullish divergence. This could be the very first signal of the potential trend reversal to the upside, or a the very least a strong correctional move up.
Today price is rejecting the lower trendline of the descending channel and could be starting to move towards the upper trendline. Previously formed support level is located near at 0.9370, and this time this might be the upside target area.
As long as price stays above the key psychological level at 0.9000, USD/CHF will be moving up. The resistance is located at 0.9370 area and is confirmed by two Fibonacci retracement levels. First is the 38.2% Fibs applied to the overall downtrend. The second is 78.6% Fibs applied to the last wave down. This means that price could be about to initiate a 350 pip move to the upside, but only as long as 0.9000 support holds.
On the downside, daily break and close below 0.9000 support, will immediately invalidate bullish forecast and price can be expected to continue trending down.
Bias: Bullish as long as daily close remains above 0.9000
Potential Support Zone: 0.9050 – 0.9070
Potential Targets: 0.9370
Have a profitable trading!