USDCHF has recently broken out of a falling wedge pattern on the daily timeframe, which is typically a bullish reversal signal. After an extended period of compression and lower highs, the pair has pierced above the descending trendline with strong bullish momentum. This breakout indicates a shift in sentiment, and we are now seeing early signs of a potential trend reversal to the upside. The structure suggests the market could target higher levels, with immediate resistance near the 0.8200–0.8300 zone and extended upside potential toward 0.8800.
From a macro perspective, the US dollar is gaining traction again, supported by firm US GDP growth and persistent inflation pressures, which keep the Federal Reserve in a cautious stance. Investors are now reassessing rate cut expectations, with Fed officials emphasizing data-dependency. On the other hand, the Swiss franc is seeing slight weakness as the Swiss National Bank remains dovish compared to other central banks. The widening monetary policy divergence favors dollar strength in the short to medium term.
Technically, the breakout above the wedge confirms buyer dominance, and with the RSI and MACD turning bullish, momentum favors continuation to the upside. The risk-to-reward remains attractive with a tight invalidation level below the recent lows around 0.7820. Price action traders may consider entering on minor pullbacks toward the breakout zone, with eyes on retesting the previous swing highs.
Overall, USDCHF presents a clean bullish setup following the breakout of a falling wedge pattern. With solid confluence from both technical and fundamental angles, this pair is poised for further gains in the coming sessions. Patience and confirmation remain key, but the structure supports a long bias for those aligned with momentum
From a macro perspective, the US dollar is gaining traction again, supported by firm US GDP growth and persistent inflation pressures, which keep the Federal Reserve in a cautious stance. Investors are now reassessing rate cut expectations, with Fed officials emphasizing data-dependency. On the other hand, the Swiss franc is seeing slight weakness as the Swiss National Bank remains dovish compared to other central banks. The widening monetary policy divergence favors dollar strength in the short to medium term.
Technically, the breakout above the wedge confirms buyer dominance, and with the RSI and MACD turning bullish, momentum favors continuation to the upside. The risk-to-reward remains attractive with a tight invalidation level below the recent lows around 0.7820. Price action traders may consider entering on minor pullbacks toward the breakout zone, with eyes on retesting the previous swing highs.
Overall, USDCHF presents a clean bullish setup following the breakout of a falling wedge pattern. With solid confluence from both technical and fundamental angles, this pair is poised for further gains in the coming sessions. Patience and confirmation remain key, but the structure supports a long bias for those aligned with momentum
Join our Forex Community Telegram group and connect with thousands of traders.
Hit the Link below
👇👇👇
linkin.bio/andrewstelegramfamily
Hit the Link below
👇👇👇
linkin.bio/andrewstelegramfamily
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Join our Forex Community Telegram group and connect with thousands of traders.
Hit the Link below
👇👇👇
linkin.bio/andrewstelegramfamily
Hit the Link below
👇👇👇
linkin.bio/andrewstelegramfamily
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.