USDCHF has broken above the resistance at the .9550 minor psychological level and looks prime for a pullback to the Fibonacci levels marked on the 1-hour time frame. 

The pair appears to be finding support at the 38.2% level, although stochastic hasn’t moved up from the oversold area yet.

This suggests that a deeper retracement to the 50% Fib might be in order, as this lines up with the 200 SMA. It also coincides with the broken resistance area and might act as support. MACD is also starting to turn higher, indicating a potential pickup in buying momentum.

A bounce could take the pair up to the previous highs near the .9700 major psychological mark and possibly on to new ones. On the other hand, a break below the 200 SMA and 61.8% Fib might be a sign that a downtrend is in order and that a test of the previous lows around .9400 is possible.

By Kate Curtis from Trader’s Way