USD/CHF Price Analysis: Breaking back inside rising channel as bulls reassert control

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USD/CHF Price Analysis: Breaking back inside rising channel as bulls reassert control
Technical Analysis
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USD/CHF is in the process of breaking back inside its rising channel as the bull trend tries to pick up momentum following a period of weakness.

USD/CHF is breaking back inside the rising channel it broke out of last week. This is probably a sign the dominant uptrend is resuming and prices will go higher. A close on a 4-hour basis back inside the channel would help confirm the bullish thesis. Price broke down and out of its rising channel on May 14. The break signaled a possible bearish reversal, however, price failed to make much headway lower. The pair recovered after bottoming on May 16 and began clawing its way higher.

For a while it looked as if the channel breakdown had reversed the short-term trend. However, price rallied and the current candle on the 4-hour has actually penetrated decisively back inside the channel. If the current candle ends on a bullish note it will indicate price has clearly broken back inside its rising channel, and the uptrend should extend quite happily upwards. In such a scenario USD/CHF would be expected to reach close to the 0.9225 highs of the year.

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