Hello traders! The USD/CHF currency pair could have reached the bottom which means that the upside correction might be on its way.
On July 9, USD/CHF tested the 0.9362 low, after which the price went up and broke above the downtrend trendline. Although after the breakout, the price corrected down sharply and rejected the 23.6% Fibonacci retracement level at 0.9384. The rejection wave very clean and the pair started to produce higher highs and higher lows, validating the upside potential.
Therefore, as long as price remains above the 0.9384, USD/CHF will be moving up, perhaps towards one of the 4 resistance levels. These levels are confirmed ty two Fibonacci retracement indicators First is applied to the overall downtrend, and second is applied to the current corrective wave down.
The first resistance is seen at 0.9443 and it corresponds to 50% and 127.2% Fibs. Then comes the 161.8% retracement level, which is at 0.9460, followed by 0.9490 resistance level corresponding to 78.6% and 227.2% Fibs. The last level is based at 0.9506, confirmed by 88.6% and 261.8% Fibonacci retracement levels, which is very likely to be the final upside target. This is because the 88.6% retracement level usually shows the biggest correction if this is a correction. But on the other hand, if this level will be broken, USD/CHF upside move might turn from correctio to the strong uptrend in the medium to long term.
Bias: Bullish while above 0.9384
Potential Support Zone: 0.9385 – 0.9400
Potential Targets: 0.9443, 0.9460, 0.9490, 0.9506
Have a profitable trading!