Swiss Franc Strength In the Making
- The USDCHF currency pair continues to defy gravity, finding support at 0.9100 in the overnight, now trading at 0.9150. Although a bit more momentum seems fitting for the currency pair today, the extended outlook is a bit more pessimistic, with Swiss franc strength likely in the short term.
- The pair is just short of major resistance at 0.9157. The level stands as the 38.2% fibonacci retracement level from the failed bullish flag breakout (0.9017-0.9246). The barrier is being compounded by a 0.9247-0.9187 descending trendline, adding to the strength of the level.
- As a result, we expect a short term support test of 0.9101 on a failure to penetrate above the level of 0.9157, a barrier that has served buyers well in the past.
- However, should the price action break above the 0.9157, it would be a momentous breakout through resistance, and shift price targets upwards towards the secondary resistance levels at 0.9216.
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