The USD/CHF has staged a huge reversal over recent days, with the pair staging a recovery of nearly 700 points.
USD/CHF technical analysis shows that the next major move is on the horizon as the pair consolidates around its key 200-day moving average, around the 0.9815 level.
USD/CHF medium-term price trend
The USD/CHF recently moved towards the 0.9900 level, as traders shunned other currencies and moved into the US dollar currency.
The announcement of open-ended bond buying from the Federal Reserve has seen the US dollar weakening against the Swiss franc, although the pullback has been fairly limited.
USD/CHF technical analysis highlights that the pair is consolidating around its 200-day moving average, as traders await the next strong directional move.
Weakness below the 0.9815 level could see the USD/CHF pair falling towards the 0.9710 and possibly the 0.9550 area.
Looking at the upside, bulls may attack back towards the 0.9900 level if the 0.9815 level holds. Once above the 0.9900 level, the 1.0000 and 1.0150 levels offer major resistance.
USD/CHF short-term price trend
USD/CHF analysis over the short term shows that the pair is bullish while the price trades below the 0.9660 support level.
The four-hour time frame shows that a huge inverted head-and-shoulders pattern will form if the price starts to advance towards the 1.0027 level.
The USD/CHF pair could rally towards the 1.0900 level if bulls start to anchor the price above the 1.0027 level.
In the near term, watch out for a range break from the 0.9750 to 0.9900 levels, as it should provoke the next strong directional move in the short term.
USD/CHF technical summary
USD/CHF analysis shows that a powerful recovery from the 0.9180 level has taken place. The pair’s 200-day moving average, around the 0.9815 level, is now likely to act as a major trading pivot.