USDCHF pulled back 61.8% of the October/November 0.9475/1.0328 rise to reach 0.9786 (December 14, 2015 low) before consolidating. Near term the pair is expected to prolong the range-bound action under the 1.0076 (near the 20 day moving average).
Below 0.9786 lies the key support cluster including the .9675 level (76.4% of the 0.9475/1.0328 rise), the 200 day moving average currently at 0.9648 and the former triangle resistance (now support, as shown on the ). The area should provide a strong foothold for the pair ahead of further upside.
However, a clean breakdown below the aforementioned support cluster would defer the upside and dampen the momentum to weaken towards 0.9475 (October 15, 2015 reaction low) which is near the triangle support.