USD/CHF Reverses After Breakout, Potential Bull Flag Formation
The USD/CHF pair experienced a pullback after breaking out of a multi-week range. While the short-term trend remains bullish, there are signs of a potential reversal.
Technical Analysis:
- Bull Flag Pattern: The pair's recent price action suggests the formation of a Bull Flag pattern, which could indicate a continuation of the uptrend.
- Upside Targets: A breakout above the 0.8607 high could lead to further gains, with potential targets at 0.8619, 0.8650, and 0.8675.
- RSI: The Relative Strength Index (RSI) has moved into neutral territory, suggesting a potential for a correction.
- Support Levels: Key support levels are at 0.8550 and 0.8540.
Overall Outlook:
The USD/CHF pair is in a short-term uptrend, but there are signs of a potential pullback. Traders should monitor technical indicators for signs of a trend reversal.