USDCHF: False Breakout Below Range to Prove the Bulls Not Willing to Give Up

USDCHF: False Breakout Below Range to Prove the Bulls Not Willing to Give Up
The USDCHF pair attempted to push lower yesterday, slipped below the rectangle formation as you can see on my daily chart below, bottomed at 1.0125 but whipsawed to the upside back inside the range area as you can see on my daily chart below. The bias is neutral in the near term.

The false breakout below the rectangle is not a good news to the bearish correction and the fact that a bullish pin bar also popped up on the daily chart only bolster the view of resumption of the broader bullish theme. However, remember that we need a clear break above the rectangle and 1.0236 level to confirm this bullish continuation scenario.

On the downside, key immediate support now lies at the “tail” of the bullish pin bar located at 1.0125. A clear break below that area would invalidate the bullish pin bar scenario and push price to the downside towards 1.0075 or lower.