The USD/CHF pair retreated in the short term after reaching the 0.9965 new high. After its strong rally, a temporary drop is natural. Technically, the rate came back to test and retest the near-term support levels. It has developed a bullish continuation pattern.
Fundamentally, the USD received a helping hand from the US CB Consumer Confidence which came in at 108.0 far above 104.0 expected, while the New Home Sales indicator was reported at 685K versus 500K estimated and compared to 511K in the previous reporting period. The greenback was saved by these figures after the Durable Goods Orders and Core Durable Goods Orders came in worse than expected.
USD/CHF Bullish Momentum!
The USD/CHF pair rallied after registering false breakdowns below 0.9850 and 0.9858 downside obstacles. Now, it has escaped from the flag pattern signaling that the retreat ended.
It challenges the weekly R1 (0.9900) and the 0.9908 resistance levels. Validating its breakout from the down-channel pattern and taking out these resistance levels could confirm further growth.
A valid breakout above 0.9908 could activate further growth. This scenario brings new long opportunities with a first upside target at the 0.9965 higher high.