The USD/CHF increased and is trying to recover after the last downside movement.Is trading in the green and looks determined to resume the Friday’s bullish candle. Price was rejected by a strong dynamic support and now is approaching an important dynamic resistance.
However, we may still need a confirmation that will increase further in the upcoming period. USD/CHF increased as the USDX is trading in the green after the Friday’s drop. The dollar index stays right below a dynamic resistance and below the 93.81 static resistance, only a valid breakout above these levels will confirm a large rebound.
We have a poor economic calendar today, so the rate is will be driven by the technical factors. Technically the USDX is somehow expected to increase further in the upcoming period because the behavior has changed (higher lows).
You can see that has found strong support above the second warning line (WL2) of the major ascending pitchfork and now could approach the median line (ml) of the minor descending pitchfork. A valid breakout above the median line (ml) will confirm a further increase in the upcoming period. The failure to close on the warning line (WL2) has signaled a bullish pressure, but the rate could still retest this level before will increase further. Looks like that the rate is developing an Inverse Head and Shoulders pattern, but is far from being confirmed.
