The USD/CHF has increased significantly today and has managed to resume the last day’s rally, has touched new highs, signalling that the bulls are in full control. The USD continues to drag the price higher as the US dollar index has embraced new highs, has jumped much above the 101.13 yesterday’s high and looks determined to resume the minor rebound, a further increase will force the USD to appreciate further versus its major rivals.
Technically, should increase further after the bounce back above the 1.0000 psychological level, now is approaching the 1.0100 level, where he could find temporary resistance. The USD’s corrective phase looks completed and the rate could approach the previous highs. The dollar continues to be supported by the fundamental factors, has rallied also because the Federal Reserve Chair Yellen has sustained that the FED could hike the interest rate again in the upcoming meetings.
On the other hand, the Swiss Franc has decreased despite the Switzerland good economic data, the CPI rose by 0.0%, even if the economists have forecasted a 0.1% drop, while the PPI rose by 0.4%, more compared to the 0.3% estimate.
You can see on the Daily chart that the price has edged higher in the afternoon and has managed to jump above the 1.0068 yesterday’s high. Has managed to jump above the median line (ml) of the minor descending pitchfork, but has failed to reach the next upside target from the 1.0091 static resistance, could come back to test and retest the broken median line (ml) of the descending pitchfork. Technically is expected to increase further after throwback above the lower median line (LML) of the major ascending pitchfork, the perspective remains bullish as long as the rate is trading inside the ascending pitchfork’s body.
We can have a great buying opportunity if the price will come back to test and retest the confluence area formed at the intersection between the lower median line (LML) of the ascending pitchfork with the median line (lml) of the descending pitchfork, the stop loss could be placed right below the mentioned confluence area.