As shown on the 4 hour chart below , the USDCHF has formed a strong bullish breakout which was confirmed by momentum indicators and falling wedge pattern - bullish reversal , but If we look to the daily chart, the pair is still trapped inside the triangle suggests sideways move, the bullish breakout happened on the 4 hours suggests more gains towards the sloping resistance of the triangle around -0.9200 - 38.2% retracement of the rally 0.8567 - 0.9595.

A clear break with a daily close above this level would increase the risk towards 0.9400 followed by 0.9600 levels, stability above the psychological level 0.9000 is indeed to keep the bullish trend intact, only a weekly close below this level would eliminate this positivity.. 

Keep in mind that the level 0.9080 - 50% retracement was very strong and pair moves below this level was limited , so a break above 0.9200 is suggested.

Best Regards

Wednesday 02 May 2012  05:52 PM