The USD/CHF currency pair, on the D1 time-frame, has broken out of a long-term upward wedge pattern. The pattern started on the 16th of February 2018 when a low was recorded at 0.91874. Ever since then the market has not been able to break out of the resistance area around 1.01265 but has all the while been making higher bottoms as registered at 0.95424 on the 21st of September 2018 and 0.97162 on the 10th of January 2019.
On the 18th of April the bulls managed to break out of the wedge pattern and on the 26th of April the market formed what could prove to be a new critical resistance level at 1.02416. Sellers temporarily managed to bring prices lower but the former resistance became support and on the 1st of May the market bounced on the new support level at 1.01265. A Hammer Candle confirmed that buyers are still in control and might take the price still higher.
If the price of the USD/CHF currency pair breaks through the critical resistance level at 1.02416, three possible price targets may be estimated from there. Attaching the Fibonacci tool to the last top at 1.02416 and dragging it to the bottom of the pullback at 1.01265, the following targets may be calculated. The first target can be anticipated at 1.03127 (161 %). The second price target can be projected at 1.04279 (261.8%) and the third and final target may be expected at 1.06142 (423.6%).
If the support level at 1.01265 is broken, the possible scenario is invalidated and needs to be re-evaluated.
As long as buyers maintain a positive sentiment and demand overcomes supply, the outlook for the USD/CHF currency pair on the D1 time-frame will remain bullish.
On the 18th of April the bulls managed to break out of the wedge pattern and on the 26th of April the market formed what could prove to be a new critical resistance level at 1.02416. Sellers temporarily managed to bring prices lower but the former resistance became support and on the 1st of May the market bounced on the new support level at 1.01265. A Hammer Candle confirmed that buyers are still in control and might take the price still higher.
If the price of the USD/CHF currency pair breaks through the critical resistance level at 1.02416, three possible price targets may be estimated from there. Attaching the Fibonacci tool to the last top at 1.02416 and dragging it to the bottom of the pullback at 1.01265, the following targets may be calculated. The first target can be anticipated at 1.03127 (161 %). The second price target can be projected at 1.04279 (261.8%) and the third and final target may be expected at 1.06142 (423.6%).
If the support level at 1.01265 is broken, the possible scenario is invalidated and needs to be re-evaluated.
As long as buyers maintain a positive sentiment and demand overcomes supply, the outlook for the USD/CHF currency pair on the D1 time-frame will remain bullish.