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USDCHF has displayed a bullish breakout, potentially signaling a continuation of the uptrend. This analysis examines the technical situation and explores potential scenarios for the currency pair.

USDCHF Escapes Trading Range:

• Breakout Above Resistance: After a period of consolidation within the trading range between 0.8997 and 0.9094, USDCHF has decisively broken above the resistance level at 0.9094.

Uptrend Resuming or Bullish Rebound?

• Uptrend Continuation Potential: The breakout suggests a potential resumption of the uptrend that began at 0.8729.
• Upside Move Extended: The price has extended its upside movement, reaching a high of 0.9146.

Upside Targets in Focus:

• Further Rise Likely: Further rise could be expected after a minor consolidation phase. The next potential target zone to watch could be around the 0.9200 area.

Support Levels to Consider:

• 0.9095 Initial Support: While the immediate outlook appears bullish, it’s important to acknowledge potential support areas. A pullback might encounter initial support around the breakout level at 0.9095.
• Limited Downside Risk: A breakdown only below the initial support level at 0.9095 could bring the price back towards a potential support zone around 0.9050.

Overall Sentiment:

The technical outlook for USDCHF has turned bullish in the short term. The breakout above the trading range resistance is a promising sign for an uptrend continuation. However, monitoring price action around the initial support level (0.9095) is crucial to gauge the strength of the move.

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