- USD/CHF is trading in a mini-range after pulling back from new highs.
- This is likely a pause before the pair reaches new highs.
USD/CHF is consolidating within its short-term uptrend in what is likely a temporary pullback before the market turns higher again.
The pair is likely in a short-term uptrend now, given the ascending sequence of peaks and troughs since breaking out of range-bound consolidation in August and September.
USD/CHF 4-hour chart
USD/CHF will likely reach the target generated after breaking the range, at 0.8680, the 100% Fibonacci (Fib) extrapolation of the upward range height. A break above 0.8641 (Oct 14 high) would provide confirmation. A break above that level could lead to a further extension towards the 0.8750 resistance level (Aug 15 high).
USD/CHF has already reached the conservative target at 0.8627, the 61.8% Fib level.
A gap opened on the chart on Monday morning and there is a risk that the market will pull back completely to fill this gap. If so, it could correct up to 0.8574. It would require a break below the previous range highs at 0.8541 to confirm a likely trend reversal.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.