The American Dollar to Swiss Franc pair started this week on a notably positive note, indicating a potential shift in sentiment and the continuation of a bullish trend. The chart shows a key horizontal resistance, marked around 0.834 with orange color, that has recently been broken to the upside—a significant technical development.
Following the breakout, the price retraced to test this former resistance as support, which is a textbook move in trend continuation. This retest was successful, as buyers stepped in to defend the level, triggering a strong bounce and subsequent rally.
In addition to this, the price broke through a mid-term descending trendline, marked in blue, adding further strength to the bullish case. With the pair now above both the horizontal support and the broken trendline, the outlook remains positive.
As long as the price stays above the orange horizontal support and the red uptrend line, we can consider the sentiment bullish, and traders may look for further gains in the short to mid-term. A move below those levels, however, would challenge this scenario.