FXStreet (Córdoba) – USD/CHF is posting modest gains on Tuesday, on a day were equities dropped sharply in Europe and in Wall Street. The US dollar and the yen were the best performers while the Swiss franc outperform among European currencies.
USD/CHF testing 0.9755
The pair started to rise last Friday after bottoming at 0.9520 and since then climbed more than 200 pips. The rally of the USD/CHF was capped today below the 0.9750/60 resistance area. A break higher could open the doors for more gains and would expose 0.9800.
Price action if forming a head and shoulders pattern in 4-hour charts, that could signal a change in the trend USD/CHF had been experiencing since early August. It the formation materializes the key dynamic resistance to watch will be a downtrend line that links 2015 highs, with March and August highs that currently stands at around 0.9850.
A break of the mentioned trend line could open the doors for more gains in the medium term, including the possibility of rising again above the parity level.
(Market News Provided by FXstreet)