USD/CHF Price Challenges 0.9229 Static Resistance, Bulls in Control

• The USD/CHF pair rallies after passing above strong upside obstacles.
• Confirming its breakout above the warning line (WL1) could validate an upside continuation.
• Only a major bearish pattern could announce a new downside movement.

The USD/CHF price is trading in the green at 0.9231 level. The upside pressure is high as the Dollar Index starts rising again. DXY’s further growth towards new highs could force the currency pair to approach and reach fresh new highs. We have a strong positive correlation between these two.

-Are you looking for CFD brokers? Take a look at our detailed guideline to get started-

Technically, the rate is in a resistance area, so you should be careful because a false breakout through the current levels could signal that we may have a temporary drop. Actually, after its strong leg higher, a minor retreat is natural

The price continues to grow even if the Switzerland PPI registered a 0.6% growth versus 0.4% expected compared to 0.2% in the previous reporting period. Later, the JOLTS Job Openings indicator is expected at 10.02M below 10.44M. We may have some volatility after the Prelim UoM Consumer Sentiment is released. The indicator is expected to jump from 71.7 points to 72.5 points. In addition, the Prelim UoM Inflation Expectations will be released as well.

USD/CHF price technical analysis: Confluence area

The USD/CHF pair jumped above the 0.9229 and above the descending pitchfork’s warning line (WL1). The price is bullish after stabilizing above the weekly R2 (0.9217) level. Positive US data could support the USD’s appreciation.

Closing and stabilizing above the warning line (WL1) and above the 0.9229, confirming its breakout could signal potential further rise, an upside continuation. Only a major bearish engulfing, a false breakout, or any other bearish pattern printed here after the US data could announce that the leg higher is over and that the USD/CHF could come back down.

-If you are interested in knowing about scalping forex brokers, then read our guidelines to get started-

Technically, an upside movement was expected as the price stayed near the descending pitchfork’s upper median line (UML). Also, making a new higher high, its breakout above 0.9176 confirmed strong upside momentum. Finally, the price action signaled that the downside movement was over after failing to make a new lower low.

Looking to trade forex now? Invest at eToro!

68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.