USDCHF finished out a strong week on Friday. In terms of importance, it was arguably the most notable week since 2005.
To find out why we have to move to the monthly chart.
As you can see from the chart above, the pair has managed to break a level that has been in place since the 2006 high. Although not yet confirmed on a monthly closing basis, last week’s close did indeed confirm the break on a weekly basis – a strong indication as to the level of bullish conviction in the market.
I previously highlighted the break of wedge resistance that occurred exactly two weeks ago. Since that time, the pair has climbed over 200 pips higher and looks to have the 2015 high at 1.0240 in its sights.
A closer look at today’s price action shows a retest of parity as new support. This area also lines up with the aforementioned trend line from 2006.
My bullish bias will remain intact as long as USDCHF remains above parity on a closing basis. A slip below it would expose the October high at 0.9950. To the upside, key resistance comes in at the 2015 high near 1.0240.
