USD/CHF Price Analysis: Bulls trying to take back control, building up for short squeeze to0.9000 eyed

USD/CHF bulls are in the market and broke the 4-hour structure at 0.8926.
Meanwhile, a bearish 61.8% Fibonacci retracement aligns with the potential support structure.

Ross J Burland FXStreet

USD/CHF is higher by some 0.4% and has rallied from a low of 0.8900 to a high of 0.8976 in a market that is trying to break higher in a short squeeze. The following illustrates the corrective bias for the meanwhile within a bearish trending market.

USD/CHF weekly charts

USD/CHF is offered and on the way to test the monthly support. However, the price is stalling and a correction could be on the cards for the coming days. A 50% mean reversion comes in at 0.9100.

USD/CHF daily chart

However, we are yet to see a bullish schematic playout on the daily chart with the price submerged below the trendline resistance without closing on the back side of it yet. The horizontal structure is located at 0.9003.

USD/CHF H4 charts

Then again, the bulls are in the market and broke the 4-hour structure at 0.8926. So long as the bulls commit, then a pullback into test the structure could be met with demand and a subsequent bullish structure will be put in. A 61.8% Fibonacci retracement aligns with the potential support structure. Below there, we have the 78.6% Fibo aligning with the neckline of the W-formation:

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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