FX.co ★ USD/CHF Bullish Outlook May 03, 2011 (Daily Strategy)

USD/CHF

The United States dollar – Swiss Franc pair, shows that the pair is on the threshold of an upside breakout, from the resistance level of 0.8650.

in technical picture we see the formation of a pattern called shoulder head shoulder, only a daily close above the uptrend line, would confirm the beginning of a new upward wave.

The positive deviation of the MACD indicator, adds weight to the positive outlook regarding the pair. The upside potential can reach the 0.8970 resistance level at least. Should consider the important support level of 0.8580, as a stop loss in case of continuing the current wave bearish.