The USDCHF has moved higher alongside broad U.S. dollar strength and, in the process, has broken above the 38.2% retracement of the decline from the June high. That key level at 0.8002 has now been cleared, with the pair currently trading near 0.8021.
The next upside target comes in at the 50% retracement level at 0.8043, which lies within a broader swing area between 0.8039 and 0.8055 (see red numbered circles on the chart above), dating back to mid-April. This zone represents a key test for buyers looking to extend the breakout.
With price moving above the top of the recent consolidation range (highlighted by the red box between 0.7994 and 0.8002), that former ceiling now becomes near-term support. Holding above it keeps the bullish momentum alive. A drop back below would signal a failed breakout, likely disappointing buyers and pulling price back into the prior range.
For now, buyers are in control—at least in the short term. The question is whether they can maintain momentum and push toward the next technical hurdles.
This article was written by Greg Michalowski at www.forexlive.com.