USDCHF - Pause at 161.8%; Bullish

Buying USDCHF from .9043, the 4 week base, resulted in USDCHF posting the most positive daily performance in 13 days Wednesday. The first prime area for a bullish Gartley pattern is 61.8% pullback off the whole pattern (.9002-.9252). This sits at .9157. The high of the day was .9158! But the strength of this upwards move would indicate that the bullish bias should continue. Furthermore, the intraday chart is just showing a pause at 161.8%, from initial gains of .9043-.9101 (.9136), a typical level for a mild profit taking correction. Hence our call is Bullish above .9122

The profit targets are .9158, yesterday’s high (confirming the bullish momentum), then .9193, 261.8% extension, then towards .9230.

The risk to this call is that buying interest is weaker than currently assessed. This would be signalled by a move through .9122, yesterday’s intraday support.