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USD/CHF is Shifting to Bullish Mode based on new Channel Support and Inverted Head and Shoulders

Looking at the 4H chart, USD/CHF has been shifting from a bearish to neutral to now a possibly bullish market.


(USD/CHF 4H chart, 4/2)

Since mid-January, USD/CHF has been falling, from 0.9155 to 0.8698. After 2 months of decline, the market rallied and broke above a falling trendline, thus shifting the mode to neutral as price danced around the 200-100-50 moving averages in the 4H chart. 

Today's price action should initiate a bullish outlook as price bounced off a new channel support as well as staying above the moving averages. 

You can also argue that there is an inverted head and shoulders pattern forming and about to be completed, with the neckline just under 0.89. You can also loosely categorize price action in late Feb to now as a rounded bottom.

The USD/CHF has only so far made a 38.2% retracement. A bullish outlook in the short-term can be toward the 50% then 61.8% retracement levels of 0.8927 and 0.8981 respectively. Note that the 50% retracement level is coincident with a support/resistance pivot area.