USDCHF Surpasses Key Resistance
26 September 2023
In our ongoing exploration of the forex market, we turn our attention today to the USDCHF pair, which has been on a noteworthy climb over the past two months. This ascent started towards the latter part of July, right after the pair had reached its local lows earlier in the month. August and a majority of September continued to illustrate this upward journey, with September showcasing particularly strong bullish momentum.
A significant development took place yesterday. The price managed to breach the crucial 0.91 resistance level, highlighted in a telling green. Historically, this marker has been quite influential, serving as a support during 2021 and later transitioning into resistance in early 2023, particularly in April and June. After yesterday's breakout, this level now seems to have re-established itself as a foundation, with the price quickly approaching the 38.2 Fibonacci level.
Yet, every uptrend has its moments of pause. The current trajectory suggests a potential for a bearish correction. Such movements are essential, particularly when an upswing seems overstretched, as it allows the market to recalibrate.
In wrapping up, the trajectory of USDCHF points towards a bullish mid-term outlook. However, for those considering entering the fray, awaiting a possible short-term pullback might be a prudent approach.