USD/CHF has been on a downtrend since the beginning of 2017, but recent movements suggest a possible break to the upside. The currency pair has moved towards the upper limits of the downward channel, indicating potential for small long positions. A climb above the 20- and 50-day moving averages further supports this trend reversal.
If a sustained break occurs, a target could be the January 3 high close to 1.0330. On the downside, the 50- and 20-day moving averages offer support at 1.0037 and 0.9991 respectively, with parity serving as psychological support. A stop around 0.9950 could be placed to limit losses if these supports fail.
Martin Essex, Analyst and Editor, suggests considering small long positions in USD/CHF. For more trading ideas and analysis, check out the Trading Guides on DailyFX. Stay updated on market trends by following Martin on Twitter (@MartinSEssex).
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