“The longer term wave structure is bullish as the decline from 1.2571 is a double zigzag (inverse of the EURUSD rally). A longer term inverse head and shoulders pattern (May 2006, December 2006, April 2007) is also visible.”
We have been waiting for a daily close above the resistance line drawn off of the 2/12 and 4/9 highs, which held last week, before getting aggressively bullish. The USDCHF closed above the line last week, thus we are bullish against 1.1993. Ultimately, we expect this rally to span weeks and target 1.2571. The near term bullish case is strong above the short term trendline, which is near 1.2160.