Daily
The USDCHFdirectional trend higher has been aligned with the USDx recovery from its recent low equivalent to the 80.05/10 basis point compared with the 0.9250/55 for the Swiss Franc. The USDx is the pivotal price point where the breakout from the previous consolidation took-off and the probability for a rebound is extremely probable and likewise the lower risk is well worth the trade. The almost perfect timing from the latest positive US Consumer Confidence and rise in Home prices have provided the lift for the USD to continue its rally today 11.28.
The 0.9255 was resting just on the technical support; where a speculative risk position to go long the USDCHF was initiated due to the low risk factor that accompanies with the position. The initial objective in the near term is @0.9435 after touching a recent price level at 0.9333 as of this writing. Although, this temporary near term trend higher will have to gain some strength before an actual bull trend would be re-establish. Daily pullbacks can be expected with this short-term rebound, a good day-trade scalping opportunity.
Weekly
The bearish trend channel as shown in the weekly USDCHF has been established from the previous months was accompanied with a two and half months of consolidation. The trading range low @0.9215 and a 0.9510 high whereas the current price @0.9330 is within the 50% FIB retracement from the previous decline. Although, the good news from the market has provided the technical support for the USDCHF moving forward in a near term trend higher.
The weekly chart formation compared with the monthly may prove to be a morning cloud configuration not unless a contrary fundamental would oppose the major trend. Any negative surprises that would break below the 0.9210/20 would be equally bearish for the USDCHF. For now, the market sentiments prevailing still holds while the USDx trails the trend higher.
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