USD/CHF forecast for February 3, 2021

Looking at the chart on the weekly time frame, we see that the USD/CHF pair has found support at 0.88000, making that consolidation and recording slight gains in the last month. The pair climbed to the current 0.89880 and tested the psychological level at 0.90000. It now looks on the chart, and there is a high probability that the pair will manage to break through that zone and rise to higher levels, 0.91000-0.92000. Looking at the moving averages, the USD/CHF pair is testing the MA20, and EMA20 and now we are waiting to see if there will be a break or a bounce again down to 0.88000. In general, the bearish scenario is still if we look at the bigger picture on the chart, and this is now just a pullback, and for a total reversal, we need more confirmation on the chart.
On the daily time frame, we see that the USD/CHF pair finds support with moving averages of MA20 and EMA20 and MA50. We can also draw a smaller trend line to see how the pair will behave at these support and resistance levels. For now, we have a small break above the trend line, but during the day, we have a lot of important news for the US dollar, so it will probably be quite volatile in the market during these reports. Technically, the USD/CHF pair enters a zone where we can expect consolidation and sideways movement on the chart.

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We see that the USD/CHF pair made three bottoms on the four-hour time frame, forming a Head and Sholders pattern, then a break above with resistance at 0.90000 and a potential continuation towards higher levels. It is also always possible for the couple to make a pullback to see a retest of the previous H&S pattern, which would be an ideal confirmation of the continuation of the bullish trend, at least in the near short term. Moving averages are on the bullish side and, for now, are supporting the dollar.