USD/CHF Price Prediction: Consolidates within the short-term uptrend

  • 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

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