Swiss Franc 1.2281 is Key

A diagonal may have kicked off the USDCHF rally but a potential double top at 1.2281 urges caution. The impulsive action from 1.2124 may be the beginning of a 3rd wave advance.

Ultimately, we expect this rally to span weeks and target 1.2571. The pair closed above the 100 day SMA yesterday, which bolsters the bullish outlook. A pullback towards Fibonacci support (38.2% - 61.8% of 1.2124-1.2281 at 1.2221/1.2184) may be needed in order to correct the 5 wave rally from 1.2124-1.2281 before the next leg higher takes place.