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Fan Yang

USD/CHF - Stalking the Short-term Correction (11/3)

As we get started with the 11/3 session, USD/CHF is still trading within a correction pattern that has been forming since last week, after the pair tagged 0.9957. 

USD/CHF 4H Chart 11/3
(click to enlarge)

Now, it looks like USD/CHF has some bullish bias if price breaks out the falling wedge, or pennant pattern seen in the 4H chart. Indeed, there is upside risk towards 0.9950. But at the same time, we should acknowledge the fact that the current correction is the strongest since the latest rally started in mid-October.

The point is, the current correction pattern could simply be part of a larger correction/consolidation pattern. Within this consolidation, there is still risk of re-testing those highs around 0.9950, but there is also downside risk towards the 0.97 psychological level, where the 100-, and 200-period simple moving averages in the 4H chart also reside.

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