- USD/CHF’s daily chart shows an inverse head-and-shoulders breakout.
- Other key indicators are also reporting bullish bias.
- The odds appear stacked in favor of a break above 0.98.
USD/CHF is better bid at press time and looks to cross the psychological resistance at 0.98 with the daily chart reporting bullish conditions.
To start with, the inverse head-and-shoulders breakout confirmed earlier this week has created room for a rally to 0.9907 (target as per the measured move method).
Backing the bullish reversal pattern is the above-50 reading on the 14-day relative strength. Additionally, the 10-day average has crossed above the 50-day average, a sign of strengthening bullish momentum.
The bullish case would weaken if the spot drops below the Feb. 12 low of 0.9741, invalidating the higher lows setup.
Daily chart
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Trend: Bullish
Technical levels
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