USD/CHF, preparing for takeoff?

FXstreet.com (Chicago) - USD/CHF has lost 0.34% throughout Monday although price action indicates potential reversal on its way.

Japanese GDP data generated bullish sentiment towards the dollar among market participants earlier today. Nonetheless, the sentiment seemed to fade as the dollar marked losses across major currencies at the opening of the American trading session. Prior to the US monthly budget statement release for July, the pair trades at 0.9250 between supports at 0.9248 (June 7th lows), 0.9237 (June 17th highs) ahead of 0.9224 (June 15th highs) and resistances at 0.9262 (July 27th lows), 0.9273 (August 1st lows) followed by 0.9284 (August 7th highs).

The FXstreet.com trend index reports the pair as slightly bullish on one-hour timeframe analysis. According to the ICN technical analysis team, “the general trend over short term basis is on the downside” although “the contradiction between stability below moving averages and the slant positive divergence appearing on MACD forces us to stand aside this week to see how the pair will react with the recent formed divergence drawn despite the strength of the downtrend. Traders should conquer 0.9390 to bring the positive picture back into focus.”