Chart: Could USD/CHF Head for a Reversal Soon?

This dollar pair has been trading sideways recently, but it also appears to be forming a near-term reversal pattern.

So will USD/CHF remain stuck in consolidation or could it soon be on an uptrend?

Better keep this level of cleavage resistance on your radar!

USD/CHF 4 Hour Forex Chart from TradingView

What’s next for the US dollar now that the Fed surprised markets with a 0.50% rate cut and signaled further easing?

USD/CHF toppled during the announcement and press time, but eventually resumed its ascent closer to its visible range resistance on the 4-hour time frame.

Can the pair continue to break this ceiling?

Remember that directional biases and market price volatility conditions are usually driven by fundamentals. If you haven’t done your homework on the US dollar and Swiss franc yet, then it’s time to check the economic calendar and stay up to date with the daily fundamental news!

As you can see from the chart above, the range resistance is close to the minor psychological mark of .8550, R1 (.8550) and the 200 SMA dynamic inflection point, which means it could attract sellers to jump. If so, keep an eye out for a return to range support near the .8400 handle and S1 (.8420).

On the other hand, a break above near-term resistance could complete what appears to be a triple bottom reversal pattern.

In this case, stay tuned for long green candlesticks suggesting that sustained bullish vibrations are in play, potentially taking USD/CHF to the next bullish targets at R2 (.8600) then R3 (.8680).

Finally, note that the Swiss National Bank (SNB) is scheduled to make its monetary policy announcement this week and another interest rate cut is on the cards, so this could cause further volatility for USD/CHF and the correlated currency pairs.

Remember to practice proper risk management and be aware of top market catalysts when trading it. Luck!