USD/CHF extends gains in fifth wave rally to 0.8950

USD/CHF advanced 0.4% to 0.8950, continuing its fifth Elliott Wave pattern as technical momentum drives the pair higher. The Swiss franc weakened amid risk-on sentiment and reduced safe-haven demand, while the US Dollar Index maintained strength above 104.50 despite mixed economic signals. Technical analysis reveals the pair completing its fourth wave correction at 0.8850 before launching into the current fifth wave extension. Fibonacci projections suggest potential targets at 0.8980 and 0.9020, with the latter representing a key psychological resistance. RSI indicators show room for further upside before reaching overbought conditions at 70. Support levels are established at 0.8920 (previous resistance turned support) and 0.8880 (38.2% Fibonacci retracement). Traders should watch for completion signals of the fifth wave, including divergences on momentum oscillators, which could trigger a larger degree correction.