Forex Technical Update
The 12/28 US session is giving the markets a jolt after several days of quiet holiday trading. The USD/CHF rallied sharply above its recent consolidation action and could be signaling a bullish continuation. The 1H chart is showing strong bullish momentum, although in the near-term, we might be a bit overbought based on RSI reading and price trading at the upper bollinger band (3 standard deviations from the 200H SMA).
The 4H chart shows the market staying above the 200SMA, and failing to confirm the break below a rising channel support. Price has retraced 61.8% since the slide from 0.9544 to 0.9242. A close above 0.9430 is a signal that the market is in bullish continuation at least toward the 0.9544 high.