I wrote about USDCHF on February 6th when the pair was testing channel resistance at 0.9280.
A critical point from that article was that bulls needed to secure a daily close above channel resistance to confirm the breakout.
Although we saw USDCHF test the level over two days, it never closed above resistance.
After some consolidation below channel resistance, USDCHF is back to testing the key breakout level.
It’s a “breakout level” because a daily close above it would break the descending channel that’s been intact since November.
That could be a significant development for the dollar.
We’re also seeing the US Dollar Index (DXY) break higher from its sideways consolidation.
But as far as USDCHF, the pair needs to close a day above 0.9255 to confirm the breakout.
That would open up higher levels like the 0.9360 pivot and potentially the critical monthly level at 0.9460.
Support for USDCHF is the recent lows at 0.9160.
