Technical Bias: Bullish
Key Takeaways
US dollar continues to create new intraday highs against the Swiss franc.
One more push towards the 0.9500 level is possible in the near term.
USDCHF support seen at 0.9300 and resistance ahead at 0.9400.
The US dollar buyers managed to take the USDCHF pair higher intraday, but there was a major reaction around the 0.9430-40 area. However, it remains in the uptrend unless it breaks the 0.9280 support area.
Technical Analysis
There is a critical bullish trend line on the 4 hour timeframe for the USDCHF pair, preceding from the 0.9000 lows. The most important thing to note is that the highlighted trend line is moving along with the 100 SMA (4H). So, we can say it as a trend definer. Yesterday, the pair jumped close to the 0.9440 level where the US dollar sellers managed to contain the upside. Currently, the pair is trading around the 23.6% Fibonacci retracement level of the last leg from the 0.9017 low to 0.9433 high. However, there is one more thing which is important i.e. the pair has breached the 50 SMA (4H), which is acting as a resistance. So, there is a chance that the pair might spike one more time lower to retest the highlighted confluence support area around the 0.9300 before surging higher. If the US dollar sellers get aggressive and manage to break the 100 SMA (4H), then a larger correction is possible in the near term which could take the pair towards the 0.9200 level.
If the USDCHF pair continues to trade higher, then initial resistance is around the 0.9380-0.9400 area. If the pair breaks the mentioned level, then a run towards the last high of 0.9433 is possible.
Moving Ahead
Overall, the bias remains bullish as long as the pair is trading above the 100 SMA (4H), but a break below could lead more losses in the short term.
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