USD/CHF Technical Analysis: bullish flag breakout opens room for additional gains

Haresh Menghani FXStreet

• Finally breaks out of a three-day-old trading range and moves past a descending trend-channel resistance, forming a bullish flag on the daily chart.
• Holds comfortably above short/medium/long-term moving averages and hence, remains poised to extend the bullish trajectory.
• Technical indicators are yet to catch up but seem unlikely to dampen positive outlook amid resurgent USD demand.

USD/CHF daily chart

Spot Rate: 0.9916
Daily Low: 0.9826
Trend: Bullish

Resistance
R1: 0.9945 (R3 daily pivot-point)
R2: 0.9993 (May 29 swing high)
R3: 1.0056 (YTD tops set on May 7)

Support
S1: 0.9898 (downtrend channel break-point)
S2: 0.9860 (50-day SMA)
S3: 0.9826 (weekly low touched earlier today)

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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