USD/CHF Price Forecast: Resumes uptrend after pullback

USD/CHF is resuming its dominant uptrend after a short correction.
The short and medium-term trends are bullish indicating odds favor a continuation higher.

Joaquin Monfort FXStreet

USD/CHF is striking higher again after a brief pullback from overbought levels. It is surging on Friday as it thrusts up towards the next key targets at 0.9000 – a whole-number psychological level – and 0.9050, the July 30 swing high.

USD/CHF Daily Chart

USD/CHF is in an established short-term uptrend which means the odds favor more upside. This is due to the theory in technical analysis that “the trend is your friend” which advocates trading in the direction of the dominant trend.

The Relative Strength Index (RSI) has almost reached above 70 again, suggesting price is close to levels where it would be considered overbought. If the RSI closes above 70 traders are advised not to add to their long positions for risk of the price pulling back.

Author

Joaquin Monfort

FXStreet

Joaquin Monfort is a financial writer and analyst with over 10 years experience writing about financial markets and alt data. He holds a degree in Anthropology from London University and a Diploma in Technical analysis.

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