USDCHF Review

The diamond formation we mentioned failed to deliver the goods as the pair surged higher breaking above the 1.1050 initial resistance; the push stopped only when we were pips away from a trendline connecting multiple swing highs on the 1 hour timeframe. This trendline forms a nice parallel channel with a support trendline connecting higher lows, although USDCHF is slowly moving higher inside this channel we think that a break above 1.12 is unlikely at this moment and expect a bigger retracement with 1.1000 as it’s major short term target. The diamond formation we mentioned failed to deliver the goods as the pair surged higher breaking above the 1.1050 initial resistance; the push stopped only when we were pips away from a trendline connecting multiple swing highs on the 1 hour timeframe. This trendline forms a nice parallel channel with a support trendline connecting higher lows, although USDCHF is slowly moving higher inside this channel we think that a break above 1.12 is unlikely at this moment and expect a bigger retracement with 1.1000 as it’s major short term target.

[NP][/NP]