The USD/CHF pair jumped higher in the fresh start of the week and now is trading at 0.8716 far above Friday's low of 0.8660. In the short term, the bias is bullish, so further growth is natural. The US Dollar should dominate the currency market if the Dollar Index extends its growth.
Surprisingly or not, the USD is strongly bullish even if the Revised UoM Consumer Sentiment came in at 71.6 versus 72.6 expected, the Employment Cost Index registered only a 1.0% growth versus 1.1% estimated, while Personal Income increased by 0.3% compared to the 0.5% growth forecasted.
Today, the Switzerland Retail Sales may report a 0.7% growth versus the 1.1% drop estimated, while the US Chicago PMI could jump from 41.5 to 43.3 points. In my opinion, only poor US data could drag the pair down again.
USD/CHF Gap Up!
As you can see on the H1 chart, USD/CHF retested the 0.8660 former low. From my previous analysis, you knew that taking out 0.8697 may announce an upside continuation.
The rate ignored this obstacle and the median line (ml) and now it tries to hit the 0.8736 former high. This stands as a static resistance.
USD/CHF Forecast!
Jumping and closing above 0.8736 is seen as a bullish signal. This scenario validates further growth. The R1 (0.8736) and the upper median line (uml) represent upside targets.
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