USD/CHF: Potential Bull Flag Pattern Forming
The USD/CHF pair has shown a surprising reversal, forming a potential Bull Flag pattern. This bullish pattern suggests further upside potential for the pair.
Key Technical Points:
- Bull Flag Pattern: The current sideways movement could be a Bull Flag pattern, indicating a continuation of the uptrend.
- Potential Target: A break above the flag's high of 0.8775 could lead to a target of 0.8832.
- RSI Indicator: The RSI is approaching overbought territory, suggesting potential exhaustion of the uptrend.
Traders should monitor the RSI and be cautious of adding to long positions if it enters the overbought zone. A break below the flag's low could invalidate the bullish pattern and signal a potential downward correction.