USD/CHF 1H Chart: Channel Up

The US Dollar has gained momentum against the Swiss Franc in recent weeks. The 2017 low at 0.9554 proved to be strong support that reversed the rate to the upside and, consequently, formed an ascending channel. The given pattern is a part of senior channel that has confined the rate in a downward movement since mid-May. The junior patter has already formed three neat waves, thus there is no indication that it may not hold this week, at least. The steepness of the upward momentum is yet unclear; however, the rate could trade rather flat with no sharp moves either direction. Thus, it is likely that the Greenback appreciates until the 0.9720 area, where an intersection of both channel lines is located. Meanwhile, a correction south is expected in the next 24 hours, resulting in a possible re-test of the 55-, 100– and 200-hour SMAs circa 0.9630. The failure to form a distinctive wave up may indicate that the price will not hold in the junior channel any longer and, therefore, a breakout to the downside may be due.