USD/CHF Price Prediction: Pulling back within an uptrend

USD/CHF is correcting back within an established uptrend.
This is likely just a correction of the dominant trend with a resumption higher to follow.

Joaquin Monfort FXStreet

USD/CHF is pulling back within an established short and medium-term uptrend. At the moment the pullback looks corrective in nature and this suggests bulls will eventually push price higher again. Given the technical analysis theory that “the trend is your friend” the odds favor a continuation higher to the next set of targets.

USD/CHF Daily Chart

USD/CHF may find support at the 0.8873 support level (green dashed line) or the (green) 200-day Simple Moving Average (SMA) at 0.8822.

A break above the 0.8958 November 22 high would probably confirm a continuation up to the next target at 0.9000 (round number and psychological area), followed by 0.9050 (July 2 swing high).

The (blue) Moving Average Convergence Divergence (MACD) line is above the zero line and the red signal line, reinforcing the bullish bias.

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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