The bottom of USD/CHF’s channel held last week, as risk aversion was still present in the trading markets. The pair is currently moving towards the middle of the channel, which might act as medium-term resistance.
Take note that stochastic is already in the overbought zone, which means that price might be ready to dip later on. If that’s the case, it could fall back to the bottom of the channel and find support around the .9000 major psychological level.
On the other hand, if the risk-off environment carries on for the next few days, USD/CHF might still make its way to the top of the channel around the .9200 major psychological level.
By Kate Curtis from Trader’s Way