Unfolding the climbing leg in radius

• USD/CHF has fluctuated since late August.
• There is currently a bullish leg unfolding in this sideways trend.

USD/CHF is trading in a range that started forming after the August lows. It is currently rising in that range, in an ascending stage that has reached about the midpoint of the consolidation.

USD/CHF 4 hour chart

USD/CHF is not in a near-term uptrend or bearish, but likely a sideways trend. As it is a tenet of technical analysis that “the trend is your friend”, the odds favor the trend continuing. This suggests that the current upward move will likely continue until it reaches the highs of the range before turning downwards and continuing the sideways swing.

The Moving Average Convergence Divergence (MACD) momentum indicator has risen above zero, which is a bullish sign and suggests a continuation of the upward movement.

A break above 0.8515 (September 19 high) would likely provide confirmation of a continuation higher towards the 0.8541 range high.