USDCHF Double Bottom In The Making?

Consolidating after the previous week’s decline, the USDCHF is forming a textbook double bottom in the New York session. Momentum indicators have already shown favor to the notion, with a stochastic golden cross and convergent MACD histogram. Both are supportive of the 1.2000 figure, where the currency is currently trading slightly above at 1.2033. Upside potential may be somewhat limited, however, with plenty of topside resistance. Barriers at 1.2052 (50 hMA) and 1.2063 (100 hMA) loom as the 1.2078 (200 hMA) will likely cap gains all together. Nonetheless, should momentum remain, the bid tone would be maintained on a break of the aforementioned and will place targets at the 1.2100. Conversely, a break lower would warrant a test of the 1.1922 (May 15, 2006 session low).