Dollar strength is still dominating price action but the move might be overdone on USD/CHF pretty soon. The 4-hour time frame shows that a resistance level is just around the corner and close to the .9400 major psychological level.
The pair seems to be stalling its recent rally at the moment, hinting that dollar bulls are running out of steam. In fact, stochastic is already in the overbought region, which means that a selloff could take place soon.
If that happens, USD/CHF could fall back to the middle of the range around the .9300 level. A tight stop above .9400 would yield a good reward-to-risk ratio.
By Kate Curtis from Trader’s Way