USDCHF was previously consolidating inside a symmetrical triangle and just recently broke past the top. Price is now moving inside an ascending channel as it gains bullish traction, but is hitting resistance at the top.

At the same time, RSI has made its way down after reaching overbought levels, indicating that selling pressure is back in play. Stochastic is also heading lower so USDCHF could follow suit.

With that, the pair could need a pullback to support in order to draw more bullish energy. Applying the Fibonacci retracement tool shows that the broken triangle top lines up with the 61.8% retracement level near the .9950 minor psychological mark.

This is also near the 100 SMA dynamic inflection point, which is above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. In other words, the uptrend is more likely to resume than to reverse.

US retail sales data is due today and a strong pickup in both headline and core readings could keep the dollar supported. Recall that upbeat PPI data fueled positive CPI expectations and dollar demand last week while hawkish Fed commentary sustained the rallies.

With that, strong consumer sector figures could convince more bulls that two more rate hikes are likely for the rest of the year. At the same time, easing trade tensions could renew business and investor confidence, with rising stocks and bond yields lifting the dollar as well.

Meanwhile, the franc could be poised to take away some of the dollar’s gains if risk-off vibes on trade troubles escalate. Keep in mind that the franc is a lower-yielding currency also and thus serves as a safe-haven when the dollar and yen are on shaky footing. There are no major catalysts lined up from Switzerland so the franc could be sensitive to risk flows.