On the Daily chart above, it’s very obvious that the USDCHF has been in a relatively steep uptrend for almost a month as price continued rallying with only a couple of shallow bearish retracements. It’s been a clear case of higher high, higher low price pattern. Early bullish action today pushed price to a new height. The bullish move was forecasted by yesterday’s price-break above a former, critical resistance level – the most recent Daily swing high @ 1.0642 (which we've highlighted using the blue broken line). Following price’s decisive close above the 1.0642 level – with a very strong bull-candle – the bulls went ahead to break the previous day’s high @ 1.0675 (not highlighted): a good sign that the bulls were resolved to push further.However, price is currently at the upper edge of an upward or bullish channel, which might prove a hurdle for the bulls. Considering the steep nature of price movement, the possibility of an imminent, deeper bearish retracement isn’t farfetched, and that gives more credence to the potential strength of the channel’s upper edge.
In all, our bias remains bullish, but let’s keep the channel’s upper edge in mind.
On the H4 chart above, price broke the most recent swing high @ 1.0606 (which we've highlighted using the blue broken line) upward. That sustained our bias in favor of an upward price move. The green horizontal line @ 1.0495 highlights the most recent swing low, and as long as price stays above it - in the absence of any new and higher swing low - our bullish or upward bias remains intact.
However, we still need our Hourly charts – using Fibonacci retracement levels and important support levels – to seek promising areas to take our Long positions. Price pattern on the Hourly must also be forming higher highs and higher lows. Please note that our aim is to buy a dip in today's up-trend.
Also, PATIENCE is the key here: we need to patiently wait for the Hourly retracement. It might happen, and it might not.
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