The USD/CHF pair is exhibiting a classic bullish trend, with alternating higher highs and higher lows. This suggests that the uptrend is likely to persist in both the short and medium term.
A recent breakout from a September trading range indicates a potential target of 0.8680. If the pair surpasses this level, it could continue to rise towards the 0.8750 resistance level. However, there is a risk of a pullback to fill a chart gap that opened on Monday.
While the overall trend remains bullish, there are some signs of potential weakness. The Relative Strength Index (RSI) momentum indicator has shown bearish divergence, suggesting that the upward momentum may be slowing.
Key Points:
- Upward Trend: The USD/CHF pair is in an uptrend.
- Potential Targets: Targets include 0.8680 and 0.8750.
- Chart Gap Risk: There is a risk of a pullback to fill a chart gap.
- RSI Divergence: The RSI indicator shows bearish divergence, suggesting potential weakness.
