USDCHF: While the pair’s three-week uptrend may be intact, corrective pullback risk continues to develop.
With USDCHF closing flat the past week, we think a correction of the mentioned uptrend could be building up further. In such a case, the 0.8932 level comes in as the next downside objective.
A turn below here will expose the 0.8896 level where a breach will pave the way for a run at 0.8859 level and possibly lower towards the 0.8800 level. Conversely, on the upside, resistance resides at the 0.8989 level where a break will set the stage for the resumption of its uptrend towards the 0.9050 level.
Further out, resistance resides at the 0.9100 level and then the 0.9150 level. Its weekly RSI is bullish and pointing higher supporting this view. All in all, the pair remains biased to the upside in the short term but now faces the risk of correction lower.
Guest post by FX Tech Strategy