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Hugo in HTO Trading,

USDCHF: Encountered some selling pressure

Since the beginning of the year the currency lost over 2.0% however last week managed to rise more than 3.0% and is in an accumulation phase since late October.

Last week the USDCHF rallied with a wide range and closed near the high of the week, in addition closed above the previous week high, which suggests a strong bullish momentum.

The stochastic an overbought market however is still showing a bullish momentum.

Seems like the currency pair has encountered some selling pressure near the 61.8 Fibonacci retracement and is now facing a dilemma, will it have the strength to continue pushing upward toward the double bottom target near the 1.0119?

Expecting an upward move to a Fibonacci retracement at 1.0119 on a break above other Fibonacci retracement at 0.9985 (scenario 1) nevertheless a push downward and subsequent bounce from the Fibonacci retracement at 0.9838 could trigger a bullish run on the currency pair up to a Fibonacci retracement at 0.9985 (scenario 2).