The up leg almost hits the target and a high radius

• USD/CHF is rising in a range-bound market.
• It almost hit its target near the top of the range.

USD/CHF extends gains as it stages an upward move in a limited market.

The move is ongoing and is likely to reach the 0.8517 resistance level formed by multiple recent highs. A truly bullish move could even see the pair touch the 0.8539 ceiling of the range.

USD/CHF 4 Hour Chart

USD/CHF is in a sideways trend. Given the principle in technical analysis that “the trend is your friend”, the odds favor an extension of this trend. Once the pair hits its top target, it will likely roll over and start a leg down towards the lows of the range.

Only a decisive break above 0.8539 and the top of the range would signal a trend change. A decisive break would be one accompanied by a long green candle that breaks above the top of the range and closes near the high, or three green candles in a row that have broken above the level. If successful, such a move would likely amount to a minimum target of 0.8617 (August 14 swing low).