- USD/CHF is trading in a mini-range after pulling back from new highs.
- This is probably a pause before the pair goes to new highs.
USD/CHF is consolidating within its short-term uptrend in what is likely to be a temporary pull back before the market goes higher again.
The pair is probably in a short-term uptrend now given the rising sequence of peaks and troughs since it broke out of the range-bound consolidation in August and September.
USD/CHF 4-hour Chart
USD/CHF will probably reach the target generated after it broke out of the range, at 0.8680, the 100% Fibonacci (Fib) extrapolation of the height of the range higher. A break above 0.8641 (October 14 high) would provide confirmation. A break above that level could lead to a further extension to the 0.8750 resistance level (August 15 high).
USD/CHF has already met the conservative target at 0.8627, the 61.8% Fib level.
A chart gap opened on Monday morning and there is a risk the market could pull back all the way to fill this gap. If so, it could correct down to 0.8574. It would require a break below the former range highs at 0.8541 to confirm a probable change of trend.
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