USD/CHF Price Analysis: Bulls banking on a recovery in the US dollar
- USD/CHF is on the verge of a significant correction.
- Bulls can target hourly and daily upside resistance structures.
USD/CHF is accumulating on the downside following the Federal Reserve's dovish tilt during the press conference which weighed on the greenback.
DXY 4-hour chart
As the DXY starts to recover back into test the counter trend line and resistance, near to 92.500/60, USD/CHF would be expected to be pressured to the upside.
The following analysis illustrates the prospective upside targets.
Daily chart
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The daily chart is in need of a correction following the Fed-induced downside spike. The M-formation is a compelling feature for which the bulls can target the prior lows/support near 0.9150.
Hourly chart
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On the hourly chart, the accumulation would be expected to lead to a correction also and move in on prior lows in a 50% mean reversion near 0.9130, ahead of the daily target area.
If the resistance here proves too much, bears will start to take profits and a downside extension for fresh hourly lows would be on the cards.