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EUR/CHF Coming off of a Double Bottom

The EUR/CHF was bullish in the first half of August, climbing from a low of 1.0529 to 1.0960. If you go back to July 31 - August 1 price action, you will see price rally from a double bottom. In the second half of August so far, price has retreated to 1.0711 before another small double bottom was completed last week.

EUR/CHF 1H Chart 8/23
(click to enlarge)

The 1H chart shows that price completed a double bottom last week and then stalled between 1.0750 and 1.08. Price action also broke above a falling trendline when completing the double bottom. However, the current bullish breakout is a weak bullish reversal signal in the 1H chart.

There is potential upside, but a break below 1.0750 could wipe that out and threaten the 1.0711-1.07 area again. A clean break above 1.08 this coming week would be a good sign that the double bottom is legit. If that is the case, then the 1.0960 August high would be back in the picture, with risk towards the 1.10 handle. 

EUR/CHF Daily Chart 8/23
(click to enlarge)

There has not been much volatility since the violent dip back in January (when the SNB abandoned the euro-swiss peg floor of 1.20. Since that dip, price has been slowly drifting back up. It spent several months stuck around 1.05 but has started rallying in July. Bottomline - the potential bullish signal in the 1H chart is in line with the slight bullish bias in the EUR/CHF since July and can be considered a potential trade opportunity, at least in the short-term towards the 1.10 handle.