USD/CHF has been quite volatile with bullish gains and is currently trading inside the resistance area range between 0.9770 and 0.9860. USD has been quite positive amid economic reports recently which helped the US currency to gain over CHF and counter well. Recently, Switzerland's Trade Balance report was published with an increased figure of 2.92B from the previous figure of 2.20B which was expected to be at 2.47B, but with a positive trade balance report the currency could not gain over USD. On the USD side, recent economic reports were very positive which helped the US currency to gather a good momentum in the volatile and corrective market. Today, US Existing Home Sales report is going to be published which is expected to have a slight decrease to 5.30M from the previous figure of 5.35M. As for the current scenario, despite positive economic reports CHF is currently struggling to hold the gains that indicates USD is quite strong in sentiment and fundamental basis which is expected to push the price much higher in the coming days. To sum up, USD is expected to have an upper hand over CHF for the coming days until Swirzerland comes up with any impulsive bearish pressure with high impact events and economic reports.
Now let us look at the technical chart. The price is currently residing inside the resistance area between 0.9770 to 0.9860 but with a dynamic level of 20 EMA carrying the price as support which indicates the pre-breakout structure is in progress. In this case, we will consider buy positions with a target towards 1.01 resistance level in the coming days if the price breaks above 0.9860 resistance level with a daily close. As the price remains above 0.0.9770 support level, the bullish bias is expected to continue further.
