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USD/CHF - Poised to Test a Key pivot at 0.89

From the technical perspective, the 4H USD/CHF chart shows a market in a reversal. After falling from 0.9155 to 0.8698, USD/CHF formed a bottom, rallied sharply, and broke the falling resistance that's been holding the pair bearish in much of 2014.


(USD/CHF 4H Chart)

Consolidation w/bullish bias:
So far, the market is consolidating after the breakout, but price action favors the bullish scenario, a higher support pivot was put in.at 0.8785.

Key support:
This week, if the market comes down to the 0.8780-85 level again, it might test a newly forming channel support. If the market can not rebound from there, we have to consider the market still bearish.

Resistance; bullish scenario:
The 61.8% retracement at 0.8981 could be a short-term outlook in the short-term. If the market can clear above 0.89, it will break above the March 2014 high at 0.8894. This will improve the case for a bullish retracement.